Economics Dr. Sauer
Homework #5 (40 points)
?Add in world market questions? And inelastic supply questions? More questions about the podcasts themselves.
Please indicate your answers on a scantron sheet. It is okay to work on your homework in grou
Ten Principles of Economics
Scarcity means that there is less of a good or resource available than people wish to have.
LOC: Scarcity, tradeoffs, and opportunity cost
Elasticity and Its Application
Elasticity measures how responsive quantity is to changes in price.
TOP: Price elasticity of demand
Measures of elasticity enh
Interdependence and the Gains from Trade
In most countries today, many goods and services consumed are imported from abroad, and many goods and
services produced are exported to foreign customers.
Thinking Like An Economist
Economists try to address their subject with a scientists objectivity.
LOC: The study of economics and definitions of economics
Wastewater runoff from large poultry farms adversely affects their neighbors. Explain the
a. The nature of the external cost
b. The outcome in the absence of government intervention or a private deal
c. The socially optimal outcome