1) A college student waits in line for hours to purchase a ticket to the Rose Bowl, but an
attorney does not. Rather than spend hours in line, he purchases a much more
expensive ticket through a ticket broker. Why?
2) Consider a nation with a large economy, like the United States, and a nation with a
small economy, like the Dominican Republic. How can the United States, with absolute
advantage in production of almost all goods, benefit from trade with the Dominican
Republic?
3) State 3 determinate market demand? How do changes in them affect the market
demand?
4) Name the 4 groups that participate in the market. What are their goals and give one
example for each of how they participate in the economy?
5) How does the study of economics depend upon the phenomenon of scarcity?
Sample Solution
