Q1: Why does scarcity imply that every society and every individual face trade-offs? (Your reply should be one or two paragraphs in length.)
Q2: Briefly discuss each of the following economic ideas (each idea should be about 1 paragraph in length):
1. People are rational,
2. People respond to economic incentives,
3. Optimal decisions are made at the margin.
Q3: What are the three economic questions that every society must answer?
Briefly discuss the differences in the way centrally planned, market, and mixed economies answer these questions. (Your reply should be about two paragraphs in length.)
Q4: What is the difference between efficiency and equity? Why do dovernments policymakers face a trade-off between efficiency and equity? (Your reply should be one or two paragraphs in length.)
5: Read the following article: To Raise Wages, Make Employers Compete for U.S. Workers by Samuel Estreicher
Select a statement in the article that is positive.
Select a statement in the article that is normative.
Do you agree with the opinion expressed in the article? Why or why not?