Unformatted text preview: Chapter 1 DQ's
1 . An opportunity cost is the cost that an individual incurs
when they choose to do one thing and miss out on the next big
thing. It relates to economics because every choice that we
make is going to incurs some opportunity cost , A greater
cost would result from the parking lot in the heart of NYC
because you miss out in usere that spares for advertisement.
businesses, etc thon with a suburban area .
2. a . burying takealt is eating at home
b. driving to school is, taking the bus
c. studying during the weekend is working
3 . Utility refers to the pleasure and happiness level of
indurduals (we attempt to maximize it ) . This idea relates
to purposeful behavior because human act in rational
self - interest where we try to increase our utility
5 . a . The unemployment rate is 4.8%
b. The unemployment rate is too high and we should
We treat " what is statements as positive and " what should
be " as normaltie.
7. Economic resources are the natural, human, and manufactured
inputs used to produce goods and services . Economic resources
fall into four main categones : labor, land, real capital
and entrepreneurs. They are also called factors of production
because they influence how much goods and services
are produced . They are called inputs as well because they go
into the production process , w/ resulting goods / services
being called outputs
10. An individual nation is limited to the combinations of
output indicated by its production possibilities cure.
International specialization means directing domestic resources
to output which the nation is highly efficient at producing....
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- Fall '19