Description
Question #1
A) What is scarcity and why is it important in economics?
B) How does scarcity influence the decisions we make?
Question #2
A) What is rational self-interest?
B) Provide some examples of decisions individuals make in order to maximize their self-interest.
Question #3
A) What are opportunity costs and how can they be used to make good choices?
B) Pretend that you are a good bass player and the Rolling Stones ask you to leave school, work, etc. and join them on tour for the next four months. What will the opportunity costs be of joining the Rolling Stones on tour?
C) What will the opportunity costs be of not joining them on tour?
Question #4
Country A can produce 2 televisions per hour of labor or 6 tables per hour. Country B can produce 1 television per hour of labor or 4 tables per hour.
A) Which country has an absolute advantage with televisions? With tables? Explain your answer.
B) Which country has an comparative advantage with televisions? With tables? Explain your answer.
C) Which country should produce televisions? Which country should produce tables? Explain your answer.
Question #5
A) What is the Production Possibilities Curve and how does it work?
Explain why each of the following would cause the Production Possibilities Curve for a country to move outward or inward:
B) The average work week increases.
C) There is an increase in the retirement age.
D) Immigration decreases.
E) There are decreases in smoking, alcohol, and drug abuse.
Do not repeat the questions with your answers. Any sources used must be cited according to APA standards.
Explanation & Answer
I have attached your assignment for you! 😀
1). In economics scarcity is known as limited resources versus unlimited wants. Scarcity is
extremely important because there is only a certain amount of resources we have that can be
distributed throughout the world. Scarcity influences our decisions tremendously. Because our
resources are very limited it is important to asses how we use them, what we use them for, and
how much we use. Limited resources are gone once we use them, which is why it is essential to
proceed with caution when deciding how to use them.
2). Rational self-interest in the idea that consumers think and act logically and accordingly to suit
and benefit their own self-interes...
Review
Review
