Chapter 1 Short Answer Questions
Choose any 3 of the following 7 questions to answer and upload your completed work on ManageBac.
- Eastern European countries are moving toward more market-based economies. Explain this movement in terms of the three questions economies must answer. Does this evolution relate to the ability to answer the questions?
- Discuss the role of labor market activity and wages of women in determining the number of children in a family. Are wages of women a measure of the opportunity cost of children? Why do some households employ nannies?
- Explain how all consumers and producers must make decisions. How is choice is an inevitable component of economics?
- How does trade between individuals benefits all parties involved. What is the importance of the division of labor, specialization, and comparative advantage when dealing with trade?
- Explain the construction of the production possibilities curve. What does it show? Describe various points on, inside, and beyond the curve. Relate its shape to increasing opportunity costs.
- How can the production possibilities curve be used to depict economic growth?
- Compare and contrast a market economy with a command economy. Include how prices and markets permeate the framework of a free market economy. Discuss prices as signals and how they provide incentives.