Ex.17. Answer the following questions

1. What is economics?

2. What is scarcity? Give some examples of rich people and poor people facing scarcity.

3. Why does scarcity force us to make choices?

4. Why do we care about what goods and services are produced? Give some examples of goods that you value highly and goods on which you place a low value.

5. Why do we care about how goods and services are produced? (Think about cost.)

6. Why do we care about when or where goods and services are produced?

7. Why do we care about who gets the goods and services that are produced?

8. What do we mean by the related ideas of trade-off and opportunity cost? Give some examples of trade-offs that you have made today and of opportunity costs that you have incurred.

9. Explain why for the economy as a whole, expenditure equals income and the value of production.

10. Why does unemployment occur? Is all unemployment a problem?

Ex.18. Name as many famous economists as you know. Explain their role in the development of economic science.

Ex.19. Economics has been called “the study of scarcity and choice”. How does this relate to your budget for the week? How does this relate to your nation’s budget?

Text B: what economics isn't