ProblemSetOne - Problem Set #1 ECON 200 B Clower Due Friday...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Problem Set #1 ECON 200 B Clower Due Friday April 9 th , 2010 Resource Utilization and the Science of Economics 1. List and explain fully the ten principles of economics. 2. What is scarcity and why is it important in economics? a) Give an example, related to economics, which demonstrates the concept of scarcity. b) Define opportunity cost and explain how it is related to scarcity. Is opportunity cost the same as monetary cost? Why or why not? 3. In a simplified economy, imagine that there is only one scarce input, labor, and only two outputs, bread and cheese. The following table show how many loaves of bread and how pounds of cheese can be produced daily with different quantities of labor. Workers Bread Workers Cheese 0 0 0 0 500 500 2,000 1,000 1,000 3,800 1,500 5,400 2,000 6,800 2,500 8,000 a) If there were only 2,500 workers available in the economy, derive a table showing the maximum amount of bread that can be produced for different levels of cheese production.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/19/2010 for the course ECON ECON200 taught by Professor Ericka during the Spring '10 term at University of Washington.

Page1 / 3

ProblemSetOne - Problem Set #1 ECON 200 B Clower Due Friday...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online