1. Provide an example of opportunity cost for an individual, a business and government. 2. Most decisions in life involve changes in the status quo. Economists emphasize the importance of marginal analysis to determine best course of action. Individuals, businesses and government should weigh marginal benefits vs. marginal costs when making decisions. Analyze the following scenario using marginal analysis. The city of Philadelphia has decided to allocate more resources to the beautification of City Parks. Discuss the potential marginal benefits and marginal costs associated with the course of action. 3. Human beings act on incentives. Changing the rules of engagement alters human behavior. Economic events create secondary effects. Assume the government eliminated all taxes on individuals making $15.00 or less per hour. How would the policy measure affect incentives to work? List and explain potential secondary economic effects of the policy. 4. Provide one microeconomic and one macroeconomic statement. 5. Provide one positive economic statement and one normative economic statement. 6. Provide an economic example of the fallacy of composition and an economic example of the post hoc fallacy. 7. Explain the key difference between the two economic systems of market capitalism and command socialism. Which one of the two economic systems does China most closely resemble? 8. Every nation attempts to achieve eight economic goals. List two economic goals which are compatible, explain how/why the goals are compatible. Listing two economic goals which conflict, explain how/why the goals are conflicting. 9. List and explain the four economic lessons associated with the production possibilities model. 10. Answer the following questions based on the production possibilities model data below: PPC DATA A B C D E F Capital goods 0 1 2 3 4 5 Consumer goods 40 38 34 28 18 0 a. Assume the economy is producing 2 capital goods and 25 consumer goods. In economic terms, what does this level of production represent? b. If the table represents production possibility for the time being, what does a level of 4 capital goods and 31 consumer goods represent. c. Assume the economy is currently operating at point C on the curve. What is the opportunity cost of an additional consumer good? What is the opportunity cost of an additional capital good? d. What is the shape of the production possibility curve under consideration? What does the shape of the curve mean in economic terms? Explain. e. Other things equal, what are the economic implications for the future of choosing point B on the curve vs. point D on the curve? f. What does a rightward shift of the production possibilities curve represent? Provide 3 real world examples of factors/scenarios which would shift the current production possibility curve to the right