Microeconomics
Unit 1 = 4 points
Assignment #1 – 45 points
Total Score = 49 points
UNIT 1 - MARKETS
2.01 in brief: (4 points: 2 points each number)
1. Goods and services only go to those who can afford to pay the market price for
them.
2. A market exists wherever
buyers and sellers interact.
Assignment #1 -Basics of Economics (Total Score = 45)
1.01 think fast: (5points)
a study of decision-making
1.02 categorization: (5points)
1. macro 2. micro 3. micro 4. macro 5. micro
THE BASIC ECONOMIC PROBLEM
1.03 fill-in: (5points)
1. lunch 2. wants, resources 3. scarcity 4. scarce 5. air
Analysis of an Economic Article (If you have written any article…10 points)
Give yourself 10 points.
1.04 in brief: (8points)
1. scarcity
2. because they have to deal with scarcity
3. If you give it enough thought, everything has an economic cost.
4. a resource so abundantly available to everyone that it does not seem to be limited
5. a decision to have something and to do without something else
6. the value of the next-best alternative
7. economic cost includes the accounting cost as well as other
qualitative costs
8. economic cost includes qualitative costs, which are difficult to quantify
1.05 exam practice: (2points each number =4)
1. You should have underlined “trade-off” and “opportunity cost.” The correct answer is
a.
2. You should have underlined “opportunity cost” and “chose not to.” The correct
answer is d.
1.06 matching: (8points)
1. F 2. G 3. D 4. A 5. C 6. H 7. E 8. B