Economics Homework One Answers - Student Nineteen

Economics Lecture 1 James G.

1\. An example of a service is a dentist and an example of a good is a bird cage.

Correct ... and interesting!

2\. If I had a choice to eat at home or go to McDonalds I would certainly choose home. My main reason is that I can have whatever I want if I eat at home while I’m limited in my choices at McDonalds (plus, my mom make really good BBQ chicken).

Good, but doesn't answer the question about transaction costs. Minus 2.

3\. Scarcity is the amount of value given to an item or service by people in response to how much people are willing to pay for it. The item is not free. An example of different values put on scarce items can be seen when the Pokémon Trading Card Game came out. By making some cards rarer than others they were able to gain many more sales. People bought more random card packages hoping to get the more valuable cards and if they did not, they would buy more packs until they did (I know I did).

Correct, although the first sentence is off target. Scarcity refers to things that are not free, as you say. But scarcity is not the "amount of value given to" something.

4\. The “Invisible Hand” is the unseen force of millions of peoples all making choices that help the economy without realizing it. An example I have seen is at a local games store which in this dark economic time is struggling. Many people go to this store (including myself) and enjoy spending evenings playing a variety of fun and entertaining games. To help keep the store from going under a few of the people who go there volunteer to work for the store without pay. This benefits not only the store but also the people in the community and the volunteers who enjoy playing and hanging out there.

Interesting. I had not heard of games stores struggling like that, but hard economics times hit nearly everything!

5\. In Luke 15: 3 Jesus tells the parable of the one lost sheep out of a hundred that the shepherd goes to find. This brings out the idea that you must take care of all that you have been given and not let any be wasted.

Good analysis.

6\. In Latin the phrase “carpe deim” means seize the day, a powerful concept that we can use in our daily lives. It encourages us to take every opportunity to do work and gain money instead of wasting our time doing other unproductive things (like watch TV).

Superb.

Good start: 58/60.--Andy Schlafly 09:52, 13 September 2009 (EDT)