Economics Assignment

Chapter 1: Economics: The Core Issues 1. Differentiate between Micro Economics and Macro Economics, and Positive and Normative Analysis. Give one example for each. (10 pts) 2. What does Adam Smith’s Invisible Hand mean? Explain how it relates to Laissez Faire. (10 pts) 3. Which economists disagreed with Laizzes Faire policy and what was their argument? (10 pts) 4. Explain the three basic decisions you study in economics. Provide examples for each. (10 pts) 5. Define Production Possibility Curve. Explain and draw this concept using an examples of products used in your household. (15 pts) 6. Define Opportunity Cost. Give an example. (5 pts) Chapter 2: The U.S. Economy: A Global View 1. Define Human Capital. In your own words explain why human capital in America is more productive than other countries. (10 pts) 2. U. S. has the lead in productivity. Explain this statement with at least three reasons. (10 pts) 3. Government plays a critical role in establishing a framework in the economy. Explain this statement with examples. (15 pts) 4. Explain how inequality of income in America is different than income equality in other underdeveloped countries. (5 pts) 5. Define GDP and Per Capita GDP. What is the difference between the two terms? (10 pts)

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