Consider a business that is currently operating (e.g., your current employer, Amazon, GM, etc.). Respond to the following questions with respect to the business you choose. Enter your answers in the box underneath each question. Refer to the example response on the next page for guidance.

Questions:

1. Identify the business and list at least one example of an economic resource for each of the four categories listed in your text that this company uses (or very likely uses).
   • Remember, you are considering economic resources (e.g., labor, capital, entrepreneurial talent, etc.), and not payment for these resources (e.g., wages, etc.). (10 points)

1. Why are these resources scarce? For example, who else could use them or what other use might they have? (5 points)

1. How can the study of economics help this company decide how to better use these resources?
   • Think specifically about marginal analysis. For example, how could marginal analysis be used when analyzing how to best use limited resources? (10 points)

EXAMPLE RESPONSE

NOTE: the example response is not part of the assignment; it is an example of what your instructor will be looking for in your answer. You cannot repeat the responses from the example in your submission.

Business: Amazon

1. Economic Resources:

Land: land to build new warehouses

Labor: employees hired to work customer service issues

Capital: buildings for offices, warehouses, servers to host websites

Entrepreneurial: skills for identifying new products and services to offer, logistical improvements for delivery, drones, etc.

1. Why are these resources scarce?

Land scarcity due to buildout, market conditions, geography, environmental/governmental constraints (e.g., General Plan, zoning, etc.) Labor shortages could/can be attributed to burgeoning economy/growth, population trends, geography, etc. Capital shortages could be predicated on economic status, governmental interference, market conditions, etc.

Talent pool could be affected by economy, demographics, geography, etc.

1. How can the study of economics help decide how to better use these resources?

Marginal analysis could be used to decide how many employees to hire for customer service. For example, if 10 more employees would reduce customer complaints by 70%, that might be the optimal number to hire. In other words, it might not be worth it to hire another 50 employees to reduce customer complaints by 90%.