Reference no: EM132180720 , Length: 2000 Words

Part A Questions -

1. When you travel to South America, you encounter countries that have a vast amounts of natural resources and very large labor forces. However, despite an abundance of these resources, you see a lot of poverty. Can you provide an economic explanation of why poverty exists?

2. Some economist argue that the government intervention makes the economic outcome even worse. Some argue that there are important economic roles of the government. What is your opinion? Does the government do good or bad? Briefly discuss.

3. Using supply-demand analysis, briefly discuss the future of real estate market in Los Angeles. (Hint: What do you think about the future price? Bubble? The possibility of burst? If so when?)

4. What is the best way to prevent and reduce smoking? Briefly discuss

Part B Questions -

1. Question: (Rational self-interest) Discuss the impact of rational self-interest on each of the following decisions:

A) Whether to attend college fulltime or enter a workforce full time.

B) Whether to buy a new textbook or a used one.

2. (Resources) To which category of resources does each of the following belong?

a. A taxicab

b. Computer Software

c. One hour legal counsel

d. A parking lot

3. (Micro vs. Macro) Determine whether each of the following is primarily a microeconomic or a macroeconomic issue:

a. What to price to charge for an automobile.

b. Measuring the impact of tax policies on total consumer spending in the economy.

c. A household's decision about what to buy

d. A workers decision regarding how much to work each week.

4. (Opportunity Cost) You can either spend spring break working at home for $80per day for five days or go to Florida for the week. If you stay at home, your expenses will total about $100. If you go to Florida, the airfare, hotel, food and miscellaneous expenses will total about $700. What's your opportunity cost of going to Florida?

5. (Shifting production possibilities) Determine whether each of the following would cause the economy's PPF to shift inward, outward or not at all.

a. An increase in average length of annual vacations.

b. An increase in immigration

6. (Production Possibilities) Under what conditions an economy would be operating inside its PPF? On its PPF? Outside its PPF?

7. (Specialization & Exchange), Explain how specialization of labor can lead to increased productivity.

8. What are your future plans? Do you think learning economics will play an important role in achieving your goals in the near future? Briefly discuss.

9. Do you face the problem of scarcity in your life? Can you think of any example?

10. WEB Question. What can I do with an Economics Degree?

a. According to the Occupational outlook handbook, what do economists study and do?