Email Assignment #1
How Costly can it be to society and a country if a firm refuses to specialize and exchange?
What does the “Fruit Picker Principle” as Opportunity Cost suggest?
Why have some countries been so slow to specialize?
What does Chaplin’s “Modern Times” imply with intensive specialization practices?
The Production Possibility Frontier (PPF) examines the wants of individuals, businesses and governments and resources such as land, labor, capital and entrepreneur.
1) Explain how each of these elements can affect the PPF curve?
2) Discuss efficiency, allocation, why there is a bowed out PPF curve?
3) Why are only two goods compared?
4) What happens to all other goods and resources while we compare the two etc?
5) What about underemployment, future and technology in relationship to the PPF curve?
6) How comparative advantage and the gains of trade relate to the PPF curve?
7) How and when is it best for government to play a role in the market?
8) What about roads, would businesses contribute to our highway system of roads if governments did not force both businesses and individuals to build our infrastructure through government taxation?
Assignment # 2
What’s the difference between change in quantity demanded and change in demand? Why is it downward sloping? What’s the difference between change in quantity supplied and change in supply? Why is it upward sloping? What is equilibrium and how are shortages and surpluses created? Why is the concept of equilibrium so important?