Objective: The objective of this DB is to have you understand basic economic principals and apply critical thinking to those principals.
Assignment:
- Read the chapters 1-4.
- Answer the following questions with complete thought and precision.
- Response must be complete sentences, free of error.
Questions (20 points each):
- What is economics and in your opinion, why is it important?
- Suppose you have a team of two workers: one is a baker and one is a chef. Explain why the kitchen can produce more meals in a given period of time if each worker specializes in what they do best than if each worker tries to do everything from appetizer to dessert.
- Suppose Alphonsos town raises the price of bus tickets from $0.50 to $1 and the price of burgers rises from $2 to $4. Why is the opportunity cost of bus tickets unchanged? Suppose Alphonsos weekly spending money increases from $10 to $20. How is his budget constraint affected from all three changes? Explain.
- Pages 66-67 has a Clear It Up exercise/example that shows the difference between shifts of the demand or supply versus movements along a demand or supply curve. Read this example and all references regarding it in your textbook. You should be comfortable and know the difference – this will be an essay question on your exam.
- List 5 key points, lesson, and/or take-way points you learned from chapter 4. Create a question from this chapter as if you were writing an exam question. I want to see the question and the answer.
Link for textbook is as follow
https://openstax.org/books/principles-microeconomics-2e/pages/1-introduction
