ECON 120 Introduction to Micro Economics
Assignment 1: Chapters 1 and 2
In recent years, Zimbabwe has had hyperinflation, with prices tripling (or more!)
every month. According to what you learned in this chapter, what do you think the
government can do to end this hyperinflation?
Some people worry that machines will take jobs away from people, making people permanently
unemployed. In the United States, only 150 years ago most people were farmers. Now, machines
do almost all of the farm work and fewer than 2% of Americans are farmers, yet that 2% produces
enough food to feed the entire country while still exporting food overseas.
What happened to all of those people who used to work on farms? Do you think most adult
males in the U.S. are unemployed nowadays, now that the farm work is gone?
Some people say that it’s okay for machines to take jobs, since we’ll get jobs fixing the
machines. Just from looking around, do you think that most working Americans are earning a
living by fixing farm equipment? If not, what do you think most working people are doing
instead? (We’ll give a full answer later in this book.)
Let’s connect Big Ideas Six and Nine: Do you think that people in poor countries are poor
because they don’t have enough money? In other words, could a country get richer by printing
more pieces of paper called “money” and handing those out to its citizens?