chapter+1

page 6 1 - 10 1) what is the difference between a good and a service? goods are physical objects services are actions or activities 2) why is the idea of scarcity a starting point for tinking economically? because you need to plan ahead with products because there is no unlimited resource of anything. 3) how is scarcity different from shortages? scarcity is limited qualities of resources limits can always be reached. a shortage is when something can't be offered at the current price 4) describe 3 factors or production? land- all natural resources used to produce goods and servies labor- the effort that a person devotes to a task and getting paid capital- any human made resource that is used to produce goods or services 5) what special advantages does physical capital offer? it saves people and big companies a whole lot of time and money 6) what role do entrepreneurs play in the economy? they fuel the economic growth by giving people something new to buy and spend money on 7) because there is no endless supply of cars or the materials needed to build cars 8) a} capital b} labor c} land d} land e} labor f} labor 9) land a place to build tutoring classes labor you need people to tutor and come to help capital building a spot or place to work in 10) agreed

page 11 1-9 1) present 3 examples that illustrate how all decisions involve trade offs? individuals- spending extra time at work, giving up free time business- a manufacturer who decides to use all her equipment to build chairs eliminates other chances for business society- using a material to build something that cannot now be used to build something else 2) mainly because if you choose something over something else then they both must be desirable to even be put under thought of choosing 3) guns or butter is a concept like if you use steel to put together a tank or such then you cannot go and use the same steel for a butter making machine 4) picking and choosing how much more or less todo 5) yes, because you will technically save $30 because $20 gas there and back and 50 off you car is better than spending that extra $30 6) a} eating pizza instead of a salad b} going to see a movie on tuesday instead of buying a movie to watch at home c} going to see a movie on saturday instead of going to the beach for the day d} watching tv and not going to the gym 7) getting ready || 8) 2 hours opportunity cost- going to work instead of being able to hang out with friends benefit- haven more time to have fun and not work 4 hours opportunity cost- getting to be at work and not have as much free time benefit- having more money yet still relax time 6 hours opportunity cost- work or go to sleep or hang out benefit- more money 9) can they afford it will they be a productive employee are they going to get along with company policies
 * = alternatives ||= sleeping in ||= waking up early ||
 * = benefits ||= get more rest be less tired allay ||= eating breakfast
 * = decision ||= sleeping in ||= waking up early ||
 * = opportunity cost ||= looks better for school ||= more sleep ||
 * = benefits ||= get ready ||= get more sleep ||

page 20-21 1-16 skip 8 1)scarcity 2)trade-offs 3)land 4) guns and butter 5)opportunity cost 6)entrepreneur 7)underutilization 8) omit 9) Scarcity has to always exists because our needs and wants are always going to be there and our resource supply can eventually run out. Goods and services are scarce because they are all made from resources that are scarce. 10) A. scarcity about food and jobs.  B. scarcity of sanitation and government C. income and material objects  D. housing and income 11. categories of food, numbers and year. 12. The law of increasing costs states that as production shifts from one item to a second item, more and more resources are necessary to increase production of the second term. 13. Building the railroad will help create jobs for people but at the time it doesn’t give us the chance to save more money because it costs so much more to create it. 14. Medicare- needs generation of a lot of money, Social Security- same as Medicare, Food Stamps – generation of money 15. i disagree because they would need to be closer to the top because they would need to create the idea that would need the land capital and labor. 16. #1 if i was gonna get up early for school or sleep in. opportunity cost: sleeping more if i didn't get up, getting ready for school and eating breakfast decision....woke up earlier  #3 wearing a really comfy pair of sweats or jeans. opportunity cost: sweats would keep me much more comfy and warm but don't look as good jeans would still keep my warm and look better. decision jeans
 * 1) 2 if i should do my homework now or later. opportunity cost: getting it done early so i don't have to stress over it, waiting so i can watch more tv and hang out longer decision...did it later