Vivian Le Mr. Moore Online Econ 09/21/15
Chapter 1 Section 1 p.6 Section Assessment 2, 6, 8, 10
2. The idea of scarcity being a starting point for thinking economically is because the aim for economics is to solve the problem of scarcity. This occurs because resources are limited and needs or wants are unlimited.
6. In the economy entrepreneurs play an important role because they’re in control of combining land, labor, and capital in order to establish new factor production.
8. The factor of production that is represented by each of the following is
An office building is an example of physical capital because it aids workers to do their jobs and provide a safe environment.
An assembly line worker
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Yes, the trip is worthwhile because the trip requires $10 in gas therefore the total amount of money you can save is $40. In addition, the money can be used towards goods and services for one 's benefits.
9. Factors an employer should consider if he/she were trying to decide whether to hire an additional worker is if the company will benefit with the extra help, will the company be able to pay for the new worker, and will there be enough room for the new worker in the company.
Chapter 1 Section 3 p.18 Section Assessment 4, 5, 7
4. If the number of farms have decreased since 1950, this means that the production possibilities for the farm output has decreased because there are only a few farms available to produce goods.
5. A. The invention of the computer would increase the production possibilities curve because they were in such high demand compared to farmed goods which became an opportunity cost. B. 1 million farm workers remained unemployed for six months would move the production possibilities curve inwards because there are no services or goods being produced.
C. A drought would move the production of possibilities curve inwards because factory goods would not be able to be delivered and farmed goods production would not be