Friday, January 25, 2013

Chapter 1 Questions

Section 1, pg. 11:
5. Describe how the owners of a coputer repair store might use the four factors of production to run their business.
The owner might use land by extracting raw materials such as tin and copper from mines. Human Labor would be involved in terms of both the factory workers that helped produce the final product from the raw materials and the sales persons working within the repair shop. All of the efforts and time these people spent are included as part of the labor . The repair shop would need some basic things such as electricity, tables, chairs, cashiers, other computers...etc. These things are all categorized under the " capital category". Human capital from the workers are also involved to get the job done. Finally, just as any other successful business, a successful repair shop would require excellent entrepeneurship. Someone who can put the land, labor, and capital into good use. Someone who can lead and make the business successful.

Section 2, pg. 17:
3. Think of some of the options you have for spending time after school-sports practice, hobby clubs, work, or extra study, for example. Which option would you have choose? What is the opportunity cost of your choice?
I would choose sports practice as I currently have, because I like to have some time to move around. The opportunity cost of my choice is probably extra studying time because that is what I would be doing if it weren't for sports practice.

Section 3, pg. 23:
3. What economics data does a PPC bring together?
PPC shows what is possible to produce from the limited amount of resources one has.. In other words, it illustrated how scarcity would affect production.

Section 4, pg. 31:
7. ( Making Inferences) How do you think politicians might use normative economics statements?
They might use it to support their political stance because statements that came from an economist can gives more credibility.

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