HW Ch.1 Questions

Sec. 1, p. 11, #5
Q: Describe how the owners of a computer repair store might use the four factors of production to run their business.
  To run a computer repair store, the owner firstly needs a land to set the shop front. He then needs to hire emplyees to do the repairing jobs. Also, he needs capital such as money and tools to start and assist the service. Lastly, he needs a strategy to organize the shop, workers, and money.

Sec. 2, p. 17, #3
Q: 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 choose? What is the opportunity cost of your choice?
  Some of my options for activity after school include doing homework, club performance practice, and playing video games. I would choose doing homework after school. However, my opportunity cost would be the club performance practice since it is my second best choice.

Sec. 3, p. 23,#3
Q: What economic data does a PPC bring together?
  PPC combines the four factors of production to show the "impact of scarcity" between two competing goods. Under the condition of fixed technology anf fixed resources are fully employed, it represents the maximum number of one good can produce relative to the number of the other. The PPC can also tell us the efficiency, underutilization, and the opportunity costs of production.

Sec. 4, p. 31, #7
Q: Making Inferences How do you think politicians might use normative economics statement?
  Normative economics involves in judgements of what economic behavior ought to be. A politician in a develped country might promote free trade within the country because he believes that eliminatine the trading barriers can bring the largest and most efficient profits for the country's economy.