Econ 170 - Econ 170 Conor Lynch Economics HW #1 Briefly...

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Econ 170 Conor Lynch Economics HW #1 Briefly discuss the following, as though explaining to a non-economist 1) Scarcity Leads to tradeoffs (Use an example from campus) a. By definition scarcity is the situation in which unlimited wants  exceed the limited resources available to fulfill those wants.  An  example of scarcity leading to a tradeoff (The idea that because of  scarcity, producing more of one good or service means producing  less of another good or service) on campus would be pizza sales in  the cellar.  When 100 kids want cheese pizza on a Friday night, and  the cellar only has enough dough to make 120 pizzas, they only will  be able to make 20 pepperoni pizzas.  If demand for pepperoni  pizzas is 30, the other 10 will be out of luck because all the other  dough was being put to use making cheese pizzas.  The cellar can  only supply pizzas demands with the amount of ingredients they  have at their disposal. 2) Efficiency vs. Equity (include the terms normative analysis and positive  analysis) a. Efficiency can be defined in two ways.  There is productive  efficiency, which is when something is being made at the lowest  price possible.  The other is allocative efficiency, this is when  businesses make something based on what the consumer is 
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This note was uploaded on 09/15/2008 for the course ECON 160 taught by Professor Gerimason during the Spring '08 term at Puget Sound.

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Econ 170 - Econ 170 Conor Lynch Economics HW #1 Briefly...

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