Make sure you show all your work for the problems requiring calculations.

1.Explain the concept of "scarcity."

2.Define opportunity cost.

3.Define Economics.

4.Determine if the following topics would be studied in Microeconomics or Macroeconomics.

a.How government budget deficits affect U.S. interest rates.

b.Belkin International started making low cost ventilators during the pandemic.

c.How a change in the price of steel impacts the price of automobiles.

d.The national unemployment rate exceeds 12%.

e.Why we buy more toilet paper during a pandemic.

5.Pete is trying to decide where to go to college.He has been accepted at University of Florida, Georgia Tech, Carnegie Mellon University, Stetson University, and University of Michigan.Pete decides to go to Georgia Tech but if he didn't choose to go there, he would have gone to Carnegie Mellon.What is Pete's opportunity cost of going to Georgia Tech?

6.The economy is answering which big question ("what," "how," or "for whom" to produce) with the following statements:

a.Coca-Cola has replaced person-driven forklifts with automated guided vehicles that do not require a person to drive them.

b.James Quincey, CEO of Coca-Cola, earns $1.3 million and the average Coca-Cola warehouse manager earns $54,000.

c.Coca-Cola stopped making Coca-Cola Zero and started making Coca-Cola Zero Sugar.

7.List and briefly describe each of the four factors of production.Include the income associated with each.

8.Define and give an example of human capital.

9.Explain what normative and positive statements are.

10.Classify each of the following statements as either normative or positive statements.

a.During a pandemic, households buy more toilet paper.

b.The government should increase unemployment benefit payments.

c.If the price of gas increases, people will buy less gas.

d.A frozen pizza costs $6.79.

e.You should take all the economics classes available.

f.The unemployment rate is above 10%.