Overview
Chapter 1 HomeworkSolve the Following Short-Essay Questions
- Why do economists use graphs in their work? Explain what is meant by a positive or direct relationship between two variables
- Differentiate between dependent and independent variables in their relationships
- What is a brief definition of economics? Explain why economics is often called a social science.
- What are the four categories of economic resources? What are the rewards paid to the use of each of them?
- Explain what the term “economizing problem” means for individuals and society.
- What is meant by the law of increasing cost? Give some examples.
- Describe how technological progress will affect the production possibility curve. Use graph to illustrate your answer.
- Discuss the two main economic systems mentioned in your book.
- Explain the major characteristics of embodied in a market economic system.
- What are the two markets and two economic decision makers in the circular flow model. Assume this is a private and closed economy.