Problem #1: Using either a graph or table (Refer to pages 11-15 for help
with graphs and tables) use two goods to construct a production possibilities
curve. Clearly explain what a variety of different points on the curve mean.
What would make the curve expand or contract? Why is efficiency lost at the
extremes, as when substantially more of one good and very little of another is
Problem #2 Part A: Go to the internet auction site eBay® at
www.ebay.comand select the category Jewelry and Watches, followed by
Loose Diamonds and Gemstones, and then Diamonds, Natural. How many natural
diamonds are for sale at the moment? Note the wide array of sizes and prices of
the diamonds. In what sense is there competition among the sellers in this
market? How does that competition influence prices? In what sense is there
competition among buyers? How does that competition influence prices?
Part B) Describe what would happen if an outside agency determined the
prices eBay could charge.
Problem #3: Read the “LAST word” feature on markets for human organs on
Pages 62–63 of your text. Next, select a social problem where free markets are
not allowed to function and describe how free market features could be
introduced to help alleviate the problem. As part of your answer also include a
discussion of the risks of introducing market mechanisms in situations where
ethical issues are present. Your answer should be approximately two pages long
and in APA format.
(Note: You can write about social problems where the free markets are not allowed
to function, which includes the market for a particular illegal good or service,
a regulated market, etc.).Economics
Please read before responding, i don't have access to print the pages from the book so if you need the pages to complete then don't respond.
Please read the attached Rubrics for grading requirements.