Economics - 687 Words

Tutorial 1 Questions (based on Textbook End-of-Chapter Questions) Question 1 Refer to Q1.1 Chapter 2 (Page 118) What do economists mean by opportunity cost? According to this definition, is there anything that does not have an opportuntiy cost? Question 2 Refer to Q1.2 Chapter 1 (Page 78). What is scarcity? Why is scarcity central to the study of economics? Question 3 Refer to Q1.10 Chapter 1 (Page 79). In a paper written by Bentley College economists Patricia M. Flynn and Micheal A. Quinn, the authros state: â€Å"We find evidence that Economics is a good choice of major for those aspiring to become a CEO (Chief Executive Officer). When adjusting for size of the pool of graduates,†¦show more content†¦a. Why might firms that provide workers with health insurance pay a lower wage to obese workers than to workers who are not obese? b. Is Bhattacharya and Bundorf’s findings relevant to the question of whether health insurance provides people with an incentive to become obese? Briefly explain. Based on Jay Bhattacharya and M. Kate Bundorf (2009), â€Å" The Incidence of the Health Care Costs of Obesity,† Journal of Health Economics, 28(3), pp. 649-58. Question 6 Refer to Q2.8 Chapter 1 (Page 80). Centrally planned economies have been less efficient than market economies. a. Has this difference in efficiency happened by chance, or is there some underlying reason? b. If market economies are more economically efficient than centrally planned economies, would there ever be a reason to prefer having a centrally planned economy rather than a market economy? Additional Questions for Home Practice Question 7 Refer to Q1 and Q2 of Thinking Critically Chapter 2 (Page 117). Question 8 Refer to Q1.7 of 2 (Page 118). Suppose we can divide all the goods produced by an economy into 2 types: consumption goods and capital goods. Capital goods such as machinery, equipment, and computers, are goods used to produce other goods. a. Use a production possibilities frontier graph to illustrate the trade-off to an economy between producing consumption goods and producing capital goods. Is it likely that the production possibilitiesShow MoreRelatedEconomics And Economics On Economics Essay1142 Words   |  5 PagesWhen we talk about economics we must first defined the word. Economics is a social science that studies human behavior and how to allocate our limited (scares) resources, efficiently and effectively to meet our unlimited human wants. Now as we dive deeper in to the field of economics we realized that there are two separate categories that the study of economics breaks off into. The first is macroeconomics, macroeconomics is the study of the whole picture when it comes to economics. Macroeconomics willRead MoreEconomics : Economics And Micro Economics1238 Words   |  5 Pages Economics is the study of how our unlimited demand of certain things can be met by our limited amount of supply. 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