Assignment
1. Write a short essay explaining the four primary groups of production. Include in your explanation an example of each group as well as what we call the payment each group receives.
2.(a) What do economists mean by the acronym TANSTAAFL.
(b) How would this concept apply to the policy of giving everyone "free" college tuition? Use the concepts of efficiency and equity to support your explanation.
3. (a) Suppose you earn a $10,000 cash bonus at your job. You use all of the money to purchase a car. Explain how both the cash and the automobile would flow through the Circular Flow diagram. Be sure to include both the product and factor markets as well as households and firms in your description.
(b) Draw a circular flow diagram and place it in the Drop Box to support your explanation.
[You may draw your diagram by hand and take a photo with your phone. E-mail the photo to yourself and download the photo or save to Google Drive. You will then be able to upload it to the Drop Box.]
4.On the production possibilities curve (PPC), there are points that are not attainable (N), efficient, and inefficient (I).
(a) Briefly explain where an economy would prefer to be on the PPC.
(b) Can the economy operate at point N? Explain why or why not.
(c) Can the economy operate at point I? Explain why or why not.
5.(a) Explain, in your own words, the Law of Increasing Opportunity Cost.
(b) What is the reason for the law?
(c) Give a brief example where you have observed this law in your own life.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.