1. _____!48 4. _____!4: ". _____!

15

8. _____!16 5. _____!46 :. ______!5

Name: ___________________________ Team: ___________________________

Total: _______/100
1.

Unit I: Basic Economic Concepts Problem Set #1

Complete each of the following tasks with short paragraphs: A. Define scarcity and explain how it is related to choices and trade-offs ____!"# $. %&lly explain the difference 'etween the following ()* *+A,-.*) %/0 *AC1#: i. Trade offs and /pport&nity Cost ____!"# ii. -rice and Cost ____!"# iii. Normati2e and -ositi2e *conomics ____!"# i2. Cons&mer 3oods and Capital 3oods ____!"# 2. Allocati2e and -rod&cti2e *fficiency _____!"# 2i. 0eso&rce ,arkets and -rod&ct ,arkets ____!"# 2ii. %ree-,arket and Centrally -lanned *conomies _____!"#

4. Draw a -rod&ction -ossi'ilities 3raph for )ony &sing the following information: ____!5 A $ C D * % 3 Digital Cameras 6 46 47 "5 86 8" 85 D9D -layers 5: 58 51 85 "; 4; 6 A. <hat are the conse=&ences of )ony prod&cing at com'ination A> <hat a'o&t com'ination 3> Are these com'inations prod&cti2ely efficient? allocati2ely efficient? or 'oth> *xplain> ____!5# $. -lot the com'ination 8" cameras and 56 D9D players and la'el it @+.A -lot the com'ination "6 cameras and 86 players and la'el it @B.A *xplain what is happening at these points> ____!5# C. *xplain? with examples? how yo&r graph shows 5 concepts: opport&nity costs? efficiency 'oth types#? &nemployment? the law of increasing opport&nity costs? and economic growth. ____!11# ". (se the --%-A and --%-$ on the 'ack of this paper to answer the following: A. /n --%-A? what is the opport&nity cost from point a to ' in terms of g&ns> <hat is the -*0 (NCT /--/0T(NCTB C/)T from mo2ing from e to c> ____!5# $. /n --%-$? what is the opport&nity cost from point a to ' in terms of g&ns> <hat a'o&t mo2ing from ' to c> <hat generaliDations can yo& make> ____!5# C. <hich --% shows increasing opport&nity costs> (se n&merical examples to explain why> ____!5#

8. Complete the hando&t entitled @ ,icroeconomics: .esson 4? Acti2ity 4A ____!16# 5. The following fig&res represent the amo&nt that can 'e prod&ced with a fixed amo&nt of factor inp&ts. Shirts TVs China 866 466 India 146 "6 A. <hich co&ntry has an a'sol&te ad2antage in prod&cing shirts> <hich co&ntry has an a'sol&te ad2antage in prod&cing T9s> *xplain how yo& got yo&r answer> ____!5# $. Define @-er (nit /pport&nity CostsA. <hat is ChinaEs opport&nity cost for prod&cing one shirt> <hat is CndiaEs opport&nity cost for prod&cing one T9> ____!5# C. Cdentify which co&ntry has a comparati2e ad2antage in shirts> <hich co&ntry has the comparati2e ad2antage in T9> *xplain how yo& got yo&r answer> ____!5# D. *xplain why these co&ntries can 'enefit from trade. Cdentify a terms of trade that wo&ld 'enefit 'oth co&ntries> ____!5# :. -ractice %0F G1 ____!5#

Name: ___________________________ Team: ___________________________