1.Explain the general difference between the economic conservative and economic liberal perspectives.Be very detailed.(Found in ViewPoint at the end of the chapter)

2.The following is a production possibilities schedule for laptops and pizza.

a.Graph the production possibilities curve.

b.What is the opportunity cost of the first 15 laptops? Of the last 15 laptops (from 45 to 60)?

c.Add point F (20 laptops and 400 pizzas). What does it represent?

d.What could cause a shift outward of the production possibilities curve?

3.The following are the demand and supply schedules for frozen burritos during one week.

a.Graph the demand and supply curves and label the equilibrium price and quantity.

b.At $5, would there be a shortage or surplus?What is the magnitude (size)?

c.At $1, would there be a shortage or surplus?What is the magnitude (size)?

4.Consider the market for rolls of toilet paper below.

a.Draw in the initial equilibrium price and quantity.(Label them P1 and Q1)

b.Draw the shift that would occur if there was increase in population.

c.What will be the effect on the equilibrium price and quantity? (Label the new equilibrium points: P2 and Q2)

5.Consider the market for computers below.

a.Draw in the initial equilibrium price and quantity.(Label them P1 and Q1)

b.Draw the shift that would occur if there is an increase in the price of computer chips (a resource used to produce the computer).

c.What will be the effect on the equilibrium price and quantity? (Label the new equilibrium points: P2 and Q2)

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