Economics Critical Thinking 2
Questions to Ponder:
Is GDP a good measure of our economic well being? Explain.
Should GDP take into account environmental issues, distributional
issues, and health and welfare issues? Explain.
How specifically can GDP be adj
Economics Journal 1
1.) Explain the three key economic questions (page 4)
What products do we produce? Trade-offs are present: If a hospital
uses its supplies to perform more heart transplants, it has fewer
supplies to care for babies that are born premat
Economics Journal 2
1.) Explain the demand curve and the law of demand (Page 61)
The demand curve is a curve or graph that shows the relationship
between price and Quantity demanded.
The law of demand states that there is a negative relationship between
Economics Critical Thinking 1
Question to ponder:
Do we work too hard? One of the limiting resources in our economy is time. As a
society, we make choices about the allocation of time between work and other
pursuits. In the US, most workers are eligible f
Economics Journal 3
1.) Distinguish between cyclical, structural, and frictional unemployment.
Cyclical unemployment is the unemployment that occurs during
fluctuations in real GDP. While, structural unemployment is
unemployment that occurs when there is
Economics Journal 4
1.) Understand the aggregate demand curve, list the components of aggregate
demand and explain why the aggregate demand curve is downward sloping.
When studying aggregate demand, we divide aggregate demand into
four components: consump
1) Understand the principle of opportunity cost and explain how understanding the
production possibilities curve illustrates (to all) a better understanding of the concept of
The production possibilities curve interprets concepts of how
June 30, 2016
1. Market determination of pay through supply and demand.
Advantages: If employers, also known as the demand, cannot find enough workers to meet their
needs, they will keep raising wages and benefit packages until more or sufficient workers
In my opinion, GDP is not a good measure of our economic well-being. Gross Domestic Product only
measures the sales and income from economic purchases, not taking moral implications into
consideration. The value of leisure and non-paid work is not factore
If the United States were to start operating on a balanced budget that would mean that the
country would not be able to spend more than its expected income. This seems reasonable,
considering this is what we learn in school and teach our children. You can