Chapter 1 Homework

Section 1

Describe how the owners of a computer repair store might use the four factors of production to run their business

The factors of production are land, labor, capital and, entrepreneurship. In a computer repair store, we would need new computer parts made out of metal and other natural resources. We need our employees, which we’ve paid to work, to use the parts to fix the computer. We also need a boss who pays for all this work.

Section 2

Think of some of the options you have for spending time after school – sports practice, hobby clubs, work, or extra study, for example. Which option would you choose? What is the opportunity cost for your choice?

I would go back to Taipei every day and hit the gym before I get back home. When I get home, I will do some homework (Of course I will not study for 5 hours a day, but ill just do my own thing on the Internet) and then ill sleep and prepare for tomorrow. The opportunity cost is pretty much straight forward. I give up time doing sports at school or stupid activities at school because my priority is getting myself sorted out.

Section 3

What economic data das PPC bring together?

PPCs are graph used to show the impact of scarcity on an economy

Section 4

How do you think politicians might use normative economic statements?

Politicians might predict what will happen to the economy and have citizens support them.