Economics Ch 1 HW 0809. Answer all questions thoroughly and in your own words.
Section 1, all vocab.
1. How does scarcity affect your life? Provide some examples of how you had to do without because of limited resources. Explain how you adjusted to this situation: did you wait for another opportunity, find a substitute, or simply do without?
2. Of the three basic economic questions, in which one do you as the consumer have the most direct involvement? Explain why this is so. Include in your answer a personal experience that would illustrate this.
3. Of the four factors of production, which in your opinion is the most important? Explain why.
Section 2, all vocab.
1. Explain what your role as a worker/consumer is in the Circular Flow. You should include how your role impacts the factor and product markets, and businesses.
2. Use an assembly line to explain the concepts of division of labor and specialization. How do these concepts relate to economic growth and productivity?
3. From an economic standpoint, what would you say to someone who told you they were considering quitting high school?
Section 3, all vocab.
1. Describe how the study and application of economics can make us better citizens.
2. Why should people weigh the advantages and disadvantages of different alternatives when making choices? Include a personal experience in your answer.
3. What is the most important economic concept you learned in this chapter? Explain why.
Paragraph topics. Write these on a SEPARATE sheet of paper to be turned in as a SEPARATE assignment.
1. Read the subsection on TINSTAAFL. Explain what this concept means and illustrate it by describing an incident in your life when you experienced TINSTAAFL.
2. Read “Profiles in Economics,” p. 18. What do you think is meant by Adam Smith’s concept of the “invisible hand?”
3. Think of a recent situation in which you were faced with making a choice among several options. (Examples: you have money to spend and several options to spend it on; it’s Friday night and you have several options for going out with friends; it’s Tuesday night and you have homework in all your classes but only enough time to do the assignment for one class.) Describe the situation and options and tell which option you chose. What are your trade-offs, and what is your opportunity cost?