Reference no: EM133205645

Assignment:

1) Why does the fact that something is scarce require that we make choices?

To let us all, make the choices by deciding which options are most important to us. As we know the scarce is that something is limited, and we need to make the right choice.

2) Does the fact that something is abundant mean it is not scarce in the economic sense? Why orwhy not?

3) In some countries, such as Cuba and North Korea, the government makes most of the decisionsabout what will be produced, how it will be produced, and for whom. Does the fact that thesechoices are made by the government eliminate scarcity in these countries? Why or why not?

4) Explain what is meant by the opportunity cost of a choice.

5) What is the approximate dollar cost of the tuition and other fees associated with the economicscourse you are taking? Does this dollar cost fully reflect the opportunity cost to you of taking thecourse?

6) Indicate whether each of the following is a topic of microeconomics or macroeconomics:

1. The impact of higher oil prices on the production of steel

2. The increased demand in the last 15 years for exotic dietary supplements

3. The surge in aggregate economic activity that hit much of Asia late in the early 2000s

4. The sharp increases in U.S. employment and total output that occurred between 2003and 2007

5. The impact of preservation of wilderness areas on the logging industry and on theprice of lumber

7) Your time is a scarce resource. What if the quantity of time were increased, say to 48 hours perday, and everyone still lived as many days as before. Would time still be scarce?

8) Most college students are under age 25. Give two explanations for this-one based on thebenefits people of different ages are likely to receive from higher education and one based on theopportunity costs of a college education to students of different ages.

9) Some municipal water companies charge customers a flat fee each month, regardless of theamount of water they consume. Others meter water use and charge according to the quantity ofwater customers use. Compare the way the two systems affect the cost of water use at the margin.

10) Suppose you were asked to test the proposition that publishing students' teacher evaluationscauses grade inflation. What evidence might you want to consider? How would the inability tocarry out controlled experiments make your analysis more difficult?(Two paragraphs)