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    Worksheet Key - Limits, Alternatives & Choices

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    emongoloide
    This document contains an economics worksheet that covers several key concepts: 1) It defines and matches terms related to microeconomics, macroeconomics, positive economics, and normative economics. 2) It provides examples of positive and normative economic statements and asks students to generate their own. 3) It identifies economic resources such as land, labor, capital, and entrepreneurial ability. 4) It includes a production possibilities table and questions about opportunity costs related to producing corn and cars. Students are asked to plot the data on a graph and calculate marginal and total opportunity costs.

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    Worksheet Key - Limits, Alternatives & Choices

    Uploaded by

    emongoloide
    610 views4 pages
    This document contains an economics worksheet that covers several key concepts: 1) It defines and matches terms related to microeconomics, macroeconomics, positive economics, and normative economics. 2) It provides examples of positive and normative economic statements and asks students to generate their own. 3) It identifies economic resources such as land, labor, capital, and entrepreneurial ability. 4) It includes a production possibilities table and questions about opportunity costs related to producing corn and cars. Students are asked to plot the data on a graph and calculate marginal and total opportunity costs.

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    Worksheet.

    Original Title

    Worksheet Key--Limits, Alternatives & Choices

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    This document contains an economics worksheet that covers several key concepts: 1) It defines and matches terms related to microeconomics, macroeconomics, positive economics, and normative economics. 2) It provides examples of positive and normative economic statements and asks students to generate their own. 3) It identifies economic resources such as land, labor, capital, and entrepreneurial ability. 4) It includes a production possibilities table and questions about opportunity costs related to producing corn and cars. Students are asked to plot the data on a graph and calculate marginal and total opportunity costs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    610 views4 pages

    Worksheet Key - Limits, Alternatives & Choices

    Uploaded by

    emongoloide
    This document contains an economics worksheet that covers several key concepts: 1) It defines and matches terms related to microeconomics, macroeconomics, positive economics, and normative economics. 2) It provides examples of positive and normative economic statements and asks students to generate their own. 3) It identifies economic resources such as land, labor, capital, and entrepreneurial ability. 4) It includes a production possibilities table and questions about opportunity costs related to producing corn and cars. Students are asked to plot the data on a graph and calculate marginal and total opportunity costs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4
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    The passage discusses different types of economics, factors of production, and production possibilities curves and opportunity cost.

    Positive economics is concerned with what is while normative economics involves value judgments. Microeconomics studies individual units like households and firms while macroeconomics looks at the whole economy.

    The factors of production are land, labor, capital, and entrepreneurial ability.

    CH_01 WORKSHEET: LIMITS, ALTERNATIVES AND CHOICES

    1. Use the appropriate number to match the terms with the phrases below.
    1. economics

    4. normative economics

    2. microeconomics

    5. macroeconomics

    3. positive economics

    6. marginal analysis

    a. The attempt to establish scientific statements about economic behavior; a concern with
    what is rather than what ought to be.

    ________

    b. Part of economics that involves value judgments about what the economy should be like
    or the way the economic world should be. _______
    c. Social science that studies how individuals, institutions, and society make optimal
    choices under conditions of scarcity.

    ______

    d. Part of economics concerned with the economic behavior of individual units such as
    households, firms, and industries (particular markets).

    ______

    e. The comparison of additional benefits and additional costs. ______


    f.

    Part of economics concerned with the whole economy or its major sectors.

    ______

    2. Following is a list of economic statements. Indicate in the space to the right of each
    statement whether it is positive (P) or normative (N). Then, in the last four lines below, write two
    of your own examples of positive economic statements and two examples of normative economic
    statements.
    a. New York City should control the rental price of apartments. ______
    b. Consumer prices rose at an annual rate of 4% last year. ______
    c. Most people who are unemployed are just too lazy to work. ______
    d. Generally, if you lower the price of a product, people will buy more of that product. _____
    e. The profits of oil companies are too large and ought to be used to conduct research on
    alternative energy sources. _____
    f.

    Government should do more to help the poor.

    g. ___________________________________________

    _____
    P

    h. ___________________________________________

    i.

    ___________________________________________

    j.

    ___________________________________________

    3. Following is a list of resources. Indicate in the space to the right of each whether the
    resource is land (LD), labor (LR), capital (C), entrepreneurial ability (EA), or some combinations
    of these resources.
    a. Fishing grounds in the North Atlantic

    _____

    b. A computer in a retail store

    _____

    c. Oil shale deposits in Canada

    _____

    d. An irrigation ditch in Nebraska

    _____

    e. Bill Gates in his work in starting Microsoft

    _____

    f.

    _____

    The oxygen breathed by human beings

    g. A McDonalds restaurant in Rochester, Minnesota

    _____

    h. The shelves of a grocery store

    _____

    i.

    A machine in an auto plant

    _____

    j.

    A person who creates a new Web site and uses it


    to start a successful business

    _____

    k. A carpenter working for a construction company


    that is building a house

    _____

    4. Following is a production possibilities table for two products, corn and cars. The table is
    constructed using the usual assumptions. Corn is measured in units of 100,000 bushels and cars
    in units of 100,000.

    Combination
    A
    B
    C
    D
    E
    F
    G
    H

    Corn

    Cars

    0
    7
    13
    18
    22
    25
    27
    28

    7
    6
    5
    4
    3
    2
    1
    0

    a. Follow the general rules for making graphs (see the appendix to Chapter 1); plot the data
    from the table on the graph below to obtain a production possibilities curve. Place corn
    on the vertical axis and cars on the horizontal axis.

    b. Fill in the following table showing the opportunity cost per unit of producing the 1st
    through the 7th car unit in terms of corn units.
    Cars

    Cost of production

    1st

    _____

    2nd

    _____

    3rd

    _____

    4th

    _____

    5th

    _____

    6th

    _____

    7th

    _____

    c. What is the marginal opportunity cost of the 3rd car unit in terms of units of corn?
    ___________
    d. What is the total opportunity cost of producing 6 car units in terms of units of corn?
    ___________

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