Description
1. What determines whether or not a resource is scarce? Why is the concept of scarcity important to the definition of economics .
2. Discuss the impact of rational self interest on each below:
Whether to attend college ft or work full time
Whether to buy a new text book or used
Whetere to attend a local college our out of town
3. Marginal analysis
The owner of a small pizzeria is deciding whether to increase the radius of delivery area by one mile. What condierations must be taken into account if such decision is to increase profitability
4. Sunk Cost and Choice
You buy an expensice meal and are full after eating half but decide to eat it. What is wrong with cleaning your plate afterall you paid for it?
5. Opportunity cost
You can spend spring break working for $80 per day or go to Flordia for the week. Staying home will cost you 100.00. Going to FL will be about 700. Whats the opporutunigy cost for going to FL?
6. Specialization
Provide examples of specialized markets or retail outlets. What makes the web so conducive to specializtioan?
Explanation & Answer
Attached.
OUTLINE
1. INTRODUCTION
2. BODY
3. CONCLUSION
4. REFERENCES
ECONOMICS
1
Questions on Economics
Student’s Name:
Institutional Affiliation:
Instructor:
Date:
ECONOMICS
2
1. Scarcity of Resources
The concept of resource scarcity holds when what is desired by the household or potential
customers is higher than that which is available at a zero price. It that experienced gap which is
referred to as the resources. The concept of scarcity is significant in economics since it defines
how every person within the economy would demand the availed commodities to satisfy needs,
wants and desires. Economists have ascertained that without this concept there would be no choice
on competing desires and needs. Economic problems, more so on demand, are defined by the
scarcity since its absence would decline competition for resources.
2. Whether to attend College or Enter Workforce full time
It is a business concept that calls for critical analysis of issues commencing from
understanding the cost of studies and that of working. It is important to consider what is incurred
during education such as the tuition fee, accommodation, bo...