1. Which of the following is true about scarcity? Explain each part in 1-2 sentences ($1,000 - $250 per part)
A) Scarcity forces us to make choices.
B) Scarcity doesn't affect the superwealthy.
C) Scarcity only affects commodities such as oil.
D) Scarcity generally doesn't affect our day-to-day living.
2. Watch this clip "Do it for Denmark", a novel campaign to raise fertility rates in Denmark. Link:https://drive.google.com/folderview?id=0B9t6KmpSs-iFMXF6Q1Ywbkd6M2c&usp=sharing($1,000)
What is the logic behind the campaign? What role do incentives play here?
3. On a similar theme to the question above, two Australian researchers noted a large spike in births on July 1, 2004. The sudden spike was not an accident. Australia, like many other developed countries, has seen the fertility rate fall below replacement levels, which is the birth rate necessary to keep the population from declining. In response to falling birth rates, the Australian government decided to enact a "baby bonus" of $3,000 for all babies born on or after July 1st, 2004.
https://www.smh.com.au/news/national/caesar-the-day-mums-delay-birth-for-3000-bonus/2006/06/18/1150569211548.html
A) What was the direct incentive behind the policy? ($500)
B) Can you think of any indirect incentives (unintended consequences)? ($500)
4. Explain why most seniors often earn lower grades in their last semester before graduation.($1,000)
5. What is the opportunity cost of attending college? ($1,000)
6. After some consideration, you decide to hire someone to help you move. Wouldn't it be cheaper to move yourself? Do you think this is a rational choice? ($1,000)
7. "Trade is like football: 1 team wins & the other loses." Is this statement true or false? Use economic reasoning in your answer. ($1,000)
8. Identify whether each of the following statements identifies a microeconomic or a macroeconomic issue.($1,000- $250 per part)
A) The national savings rate is less than 2% of disposable income
B) Jim was laid off from his last job and he is currently unemployed.
C) Apple decides to open up 100 new stores.
D) The government passes a jobs bill designed to stabilize the economy during a recession.