1) Give 3 reasons that explain why the division of labor increases an economy’s level of production. Please answer this question in one paragraph of about 150 words.
2) Explain why scarcity leads to trade-offs. Please answer this question in one paragraph of about 150 words.
3) Identify which of the following would be studied as a part of microeconomics, and which would be studied as a part of macroeconomics. You may do this quite briefly. Simply list the letters A thru J – and write “micro” or “macro” next to each one. Please answer this question in one paragraph of about 150 words.
a – Costco
b – The Bahamas
c – International trade
d – GDP (Gross Domestic Product)
e – Danielle’s Plumbing and Heating
f – Debra’s Chicken Wings and Soda Fountain
g – Inflation
h – The Red Cross
i – The City of Toledo, Ohio
j – The effects of changes in tax policy
4) Please study this table of monthly production possibilities for Mike, an economics professor at TCIU – Totally Cool Interstate University, and part-time wedding planner.Please answer this question in one paragraph of about 150 words.
A B C D E F
# of econ classes/month 5 4 3 2 1 0
# of weddings/month 0 2 4 6 8 10
What would it cost Mike to move …..
• from C to F
• from D to B
• from E to A
• from B to D
