Unit I Homework
Answer the following from the Problems Appendix in the back of your textbook on pp. 325-326, and upload your answers through Blackboard:
Chapter 1: Questions 1, 2, and 4
Chapter 2: Questions 1, 2, and 4
Your completed Homework assignment should be at least three to four pages in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations. All references and citations used must be in APA style.
Questions
Chapter 1
1. (Definition of Economics) What determines whether or not a resource is scarce? Why is the concept of scarcity important to the definition of economics?
2. (Rational Self-Interest) Discuss the impact of rational self-interest on each of the following decisions:
a. Whether to attend college full time or enter the workforce full time
b. Whether to buy a new textbook or a used one
c. Whether to attend a local college or an out-of-town college
3. (Marginal Analysis) The owner of a small pizzeria is deciding whether to increase the radius of delivery area by one mile. What considerations must be taken into account if such a decision is to increase profitability?
Chapter 2
1. (Marginal Analysis) The owner of a small pizzeria is deciding whether to increase the radius of delivery area by one mile. What considerations must be taken into account if such a decision is to increase profitability?
2. (Opportunity Cost) You can spend spring break either at home working for $80 per day for five days or go to Florida for the week. If you stay home, your expenses will total about $100. If you go to Florida, the airfare, hotel, food, and miscellaneous expenses will total about $700. Whats your opportunity cost of going to Florida?
3. (Specialization) Provide some examples of specialized markets or retail outlets. What makes the Web so conducive to specialization?
