Identify the kinds of things you purchase with your money. Now, think of as many alternative uses for your money as you can. If you have not done this often, begin doing it little by little, even for small purchases such as a pack of gum or can of soda. How does this relate to opportunity costs? How do your decisions relate to scarcity? Analyze the relationship between your purchases and budget constraints. How does this impact the circular flow model? Explain reasoning and show it graphically, utilizing the circular flow model. You may use yourself as an example to demonstrate this in the circular flow model.

Identify the kinds of things you purchase with your money. Now, think of as many alternative uses for your money as you can. If you have not done this often, begin doing it little by little, even for small purchases such as a pack of gum or can of soda. How does this relate to opportunity costs? How do your decisions relate to scarcity? Analyze the relationship between your purchases and budget constraints. How does this impact the circular flow model? Explain reasoning and show it graphically, utilizing the circular flow model. You may use yourself as an example to demonstrate this in the circular flow model.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter1: What Economics Is About

Section: Chapter Questions

Problem 21QP

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Similar questions

a) Trade-offs are important part of economic decision making. You are supposed to Analyze and explain any three trade-offs that you face in your life. b) You plan to study on weekend and your friends ask you to go to a farm house with them. What do you think is the true cost of spending your weekend on a farmhouse with friends? c) You plan to spend your weekend working at your father’s superstore for a wage, but your friends ask you go play cricket at the weekend. What do you think is the true cost of spending your weekend playing cricket with friends?
Economics affects nearly everything we do in some way. Someone else has produced most items we consume, or use, in our daily lives, from food to clothes to music to gas for our cars. Chances are, when we purchase these daily items, we don't question the price with the producer. But in the United States, the interactions between the consumers and producers determine quite a lot in terms of business and economics. Think about the items and services that you and your family buy or consume. What causes you to pay the prices that you do for these goods and services? What determines the price that's on the price tag? What goes into determining, or setting, that price? Consider all the possible elements that could influence the prices you pay.
give three examples of important tradeoffs that you face in your life
Think about your own life. Maybe you are willing to spend 50 or 60 hours a week between school and work. Maybe you take care of young children and have a lot of home life responsibilities and you only spend 20 hours between school and work. Draw your own personal Production Possibilities Frontier (PPF) for time spent doing school and work. Remember to plot out multiple possible combinations and then draw a line to connect them. Explain where you operate on your PPF and why. What are some of the opportunity costs you have to weigh to determine where you will operate along your personal PPF curve?
Name two types of scarcity
Why is scarcity central to economics?
What is your opportunity cost of taking this course at Berkeley College? How does the role of scarcity influence decisions that you have to make?
What are the decisions that people have usually made that incurred opportunity costs?
A). List the Ten Principles of Economics (just the titles). Group them in three categories: (i). How people make decisions, (ii). How people interact, and (iii). How the economy as a whole works. B). Define opportunity cost. Be precise with the words used. C). Draw a Circular Flow diagram.
Suppose a nation has a total of 12 units of labor, which can be used to produce either guns or butter. One gun takes 6 units of labor to produce and 1 butter takes 2 units of labor to produce.  Explain why scarcity exists in this economy. Use the data as evidence of your reasoning.  What is the maximum quantity of guns that can be produced?  What is the maximum quantity of butter than can be produced?  Draw the nation’s production possibility curve.  What is the opportunity cost of guns in this nation?  Explain why the nation can’t produce both 3 guns and 4 butters.  Explain why the nation shouldn’t produce both 1 gun and 2 butters.
How do you evaluate your opportunity cost in terms of the alternative decisions that you have to make?
Why choice arise as a result of scarcity?