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The basic economic problem. Learning summary. Before completing the activities in this section, review your work on these topics: The nature of the economic problem. Factors of production. Opportunity cost. Production possibility curves. LINK. See Chapters 1–4 in the Coursebook. Part 1 Definitions.
Practice Problems 1. Use the graph below to answer the following questions. a) If Alison is currently growing 80 bunches of kale per period, how many radish bunches is she growing? Assume that resources are fully utilized. b) What is the opportunity cost of one bunch of radishes? c) What is the opportunity cost of one bunch of kale?
Progress check Section 1: The basic economic problem Answer the following questions to check your understanding: 1 What is the difference between a need and a want? 2 What is the economic problem? 3 Give an example of a free good and an economic good. Sample question Describe whether each of these is an economic good or a free good: i a mobile ...
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This is the fundamental economic problem (Step 1 of the PACED model) faced by society. The PACED model provides a five-step process for making decisions: P: Identify the problem. Usually, the problem is related to scarcity. A: List alternatives—the options you will choose from.
- Definitions
- Drawing diagrams
- Similarities
- Diferences
- Data exercise
- Homework assignment
- Missing words
This exercise is based on some of the key terms used in economics. Match the following terms with their appropriate definitions. For instance, if you think an ‘inability of workers to change jobs and location’ defines ‘scarcity’, match 1 with c. Each term has an appropriate definition. If you find that you are left with a term and a definition whic...
It is important that you gain experience in drawing diagrams. Each diagram you draw should be clear and well labelled. You must have appropriate words on both the vertical and horizontal axes of a diagram. It is probably best to draw diagrams in pencil so that if you make a mistake, you can rub it out and start again. Draw a production possibility ...
This is another exercise to help you build up your understanding of aspects of the topics covered in this first section. Identify one way in which each of the following pairs is similar: Builders and teachers. The entrepreneur and labour. Forests and streams. Wind and sunlight. Production possibility curves and production possibility frontiers.
Identify one way in which each of the following pairs is diferent: Capital goods and consumer goods Economic goods and free goods Capital and land Geographical immobility and occupational immobility Opportunity cost and financial cost
In an economics examination your ability to interpret and analyse economic data will be tested. The use of data puts economics in a real world context. In answering data-based questions, you should first read through the questions so that you know what you are looking for. Then read through the data. You may wish to highlight key words. Having read...
Review the work in this section and then answer the following question:
This exercise includes twice as many sentences than in Section 1. Think carefully about the most appropriate word or words to complete the sentences. Any type of economic system has to answer key economic questions. One of these is how the products that are made are . A mixed economy is one in which the allocation of is determined by both the mecha...
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Now, with expert-verified solutions from Microeconomics 6th Edition, you’ll learn how to solve your toughest homework problems. Our resource for Microeconomics includes answers to chapter exercises, as well as detailed information to walk you through the process step by step.
Our resource for Microeconomics includes answers to chapter exercises, as well as detailed information to walk you through the process step by step. With Expert Solutions for thousands of practice problems, you can take the guesswork out of studying and move forward with confidence.
