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# plugin-PS_1 - Any typo or mistake is on me Any questions...

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Any typo or mistake is on me. Any questions, email me. Econ 103: Sec.05 Problem Set #1: Due on Tuesday 14 th September 2010 Note: 1. Do it LOL. Do it independently . Do it carefully. 2. Write your answer on the answer sheet attached. I only collect answer sheets on Tuesdays. 3. Good Luck! 1. Statement 1: Scarcity means that there is less of a good or resource available than people wish to have. Statement 2: Equality refers to how the pie is divided, and efficiency refers to the size of the economic pie. a.1 is true; 2 is true. b.1 is true; 2 is false c.1 is false; 2 is true d.1 is false; 2 is false. 2. The adage, "There is no such thing as a free lunch," means a. even people on welfare have to pay for food. b. the cost of living is always increasing. c. people face tradeoffs. d. all costs are included in the price of a product. 3. Sophia is planning her activities for a hot summer day. She would like to go to the local swimming pool and see the latest blockbuster movie, but because she can only get tickets to the movie for the same time that the pool is open she can only choose one activity. This illustrates the basic principle that 4. As a result of a successful attempt by government to cut the economic pie into more equal slices, a. it is easier to cut the pie, and therefore the economy can produce a larger pie. b. those who earn more income pay less in taxes. c. the pie gets smaller, and there will be less pie overall. d. government will spend too much time cutting and it causes the economy to lose the ability to produce enough pie for everyone. 5. Sue drinks three sodas during a particular day. The marginal benefit she

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Any typo or mistake is on me. Any questions, email me. enjoys from drinking the third soda
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plugin-PS_1 - Any typo or mistake is on me Any questions...

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