- Which one is true? Explain why others are false.
1. Economics is the study of how people make choices under conditions of scarcity and of the results of those choices for society.
2. Microeconomics is the study of the performance of national economics and of the policies that governments use to try to improve economic performance.
3. Macroeconomics is the study of individual choices and of group behavior in individual markets.
4. The rational person pursues additional units as long as the marginal cost of the activity exceeds its marginal benefit.
- Which one is false? Explain why that is false.
1. The production possibilities curve is a simple device for summarizing the possible combinations of output that a society can produce if it employs its resources efficiently.
2. One person has a comparative advantage over another in the production of a good if she or he can produce more of that good than the other person.
3. The Cost-Benefit Principle says that a person should take an action if, and only if, the benefit of that action is at least as great as its cost.
4. Market equilibrium occurs when the quantity buyers demand at the market price is exactly the same as the quantity that sellers offer.
- Writing Assignment 1 (Problem Solving)Ted can wax a car in 20 minutes or wash a car in 60 minutes. Ishana can wax a car in 15 minutes or wash a car in 30 minutes. What is each person’s opportunity cost of washing a car? Who has a comparative advantage in washing cars?
(Source: Textbook Chapter 2 – Principles of Macroeconomics, Frank, R.; Bernanke B.; Antonovics, K; Heffetz, O, 8th edition, 2022 New York, NY: McGraw Hill Education)
- Writing Assignment 2Give an example of behavior you have observed recently that could be described as “smart for one but dumb for all.”
(Source: Textbook Chapter 3 – Principles of Macroeconomics, Frank, R.; Bernanke B.; Antonovics, K; Heffetz, O, 8th edition, 2022 New York, NY: McGraw Hill Education)
* No more than 200 words.