Principles of Microeconomics (Econ 2600)Lakeland Community CollegeDr. Hyojin JeongHomework Assignment 1 Suggested AnswersI. Chapter 1: Questions & Problems: 1, 4, 6, 7, 9, 13, 20 (p21)1.The United States is considered a rich country because Americans can choose from an abundance of goods and services. How can there be scarcity in a land of abundance?
4.What is the difference between the resource labor and the resource entrepreneurship?
6.Explain the link between scarcity and each of the following: (a) choice, (b) opportunity cost, (c) the need for a rationing device, (d) competition.
(c)Because wants exceed resources, some method for allocating scarce resources is necessary. Although there are many rationing devices, the most common one used in
7.Is it possible for a person to incur an opportunity cost without spending any money? Explain.