1. In an answer of two paragraphs, compare the concepts of scarcity and shortage, and provide an example of each.
2. All of society competes for the limited resources that are available. In an answer of two paragraphs, describe four common methods countries use for allocating resources and explain how each addresses the issue of competition between members of society.
3. Part 1: Economists are fond of saying "there is no such thing as a free lunch." From an economist’s perspective, in two paragraphs, explain what this statement means. Be sure to explain how situations like this include choices and trade-offs, and include an example.
Part 2: From a consumer’s perspective, in one paragraph, describe how consumer rights can be overlooked.
4. The ABC Company executives decide that they will begin to produce more gidgets than gadgets. They previously had been producing 500,000 gadgets per year and only 300,000 gidgets. Yet they noticed that at the end of the year, there were still 100,000 gadgets left on the shelves and no gidgets.
a. In an answer of one paragraph, explain why the company would want to produce more gidgets based on this market data.
b. In an answer of one paragraph, explain why the ABC Company’s decision involves a trade-off and identify what the trade-off is.
5. You are faced with a dilemma. You want very much to go to the park with your friends and hang out. However, your mother left you firm instructions to clean your bedroom. Her final words were "or else!" Create a decision-making grid similar to the one you learned about in this unit. Then decide which would be the best use of your time. Make a choice as to which you will do. Submit both your grid and an explanation (at least one paragraph in length) in which you explain how you have decided to use your time and why you made that particular choice.
6. a.Which point on the graph shows that if the country produces 8 million alarm clocks, it can only produce 16 million DVD movies?
b.Which point on the graph shows that if the country produces 6 million DVD movies, it can produce 20 million alarm clocks?
c. If the country produces 25 million alarm clocks, how many DVD movies can it produce?
d. If the country produces 20 million DVD movies, how many alarm clocks can it produce?
e. How many alarm clocks can the country produce if it produces 11 million DVD movies?
f. What does Point G represent on the graph?
g. What does Point F show on the graph?