1. ( Scarcity and economic development)—-Why is economic growth an important ingredient to a nation’s development. What are four of the key ingredients that cause economic development (name/list four key ingredients)? Also name or identify three factors that may negatively impact economic development in a country and name one country as an example.
2. What is simple, discount and compound interests (definitions)? Suppose you save $10,000 today at an interest rate of 12%, how much will you have in savings after 7 years from now? Suppose you lend a friend $2000 to be paid in a lump sum in four years at the same 12%. What is the Present Value?
3. What is a normative statement and what is positive statement. Give one example each of a normative and a positive statement that is not from textbook.
4. In your text book, page 33 # 3…answer the question here.
5. In your textbook, page 66, # 2, #3, #6, #14, & #19….answer here
6. During this NJ governor’s campaign, the candidates are promising to do a lot; example: better health care, more health care for most people, better environment, better education and more spending on infrastructures, improved road systems, bridges, sewer systems, lower taxes and water systems and so on. What important economic concepts do candidates ignore? Explain based on chapter two concepts.