Week 1 essays questions

Week 1 essay questions

1 . What opportunity costs did you incur in reading this chapter ? If you read four more chapters of this text today would your opportunity costs (per chapter ) increase or decrease ? Explain

Opportunity cost next best alternative giving up playing computer games

If one reads additional four chapters , the opportunity cost will increase . As you increase the time allotted for reading , you also increased the time you sacrificed for playing computer games Opportunity cost is all about sacrificing or giving up the second best alternative . A decision made

between choosing will incur opportunity cost ( Opportunity Cost , 2007

2 . Markets reward individuals according to their output communism rewards people according to their needs . How might these different systems affect work effort

Rewards are given to individuals who perform well and give higher output than others . Rewards are used in economics in to boost the individuals (for example , labor ) output for the benefit of the market and the economy itself . If rewards exist , then there is a chance that individual outputs will be boosted . In the case of communism , rewards have been perceived differently . In a communist country , rewards maybe harmful to their economy . Giving rewards to those in need may affect the individual outputs . If one works so hard and produces more output , his or her efforts to boost outputs are useless . Economy in a communist country is limited and sometimes economic growth is suppressed (Council for Economic Education , 2005

3 . Why is per capita GDP (output...