Provide an example of a scarce resource and a free resource. What are the key differences between the two? What can cause a free resource to become a scarce resource?

Economists argue there is "no such thing as a free lunch," yet you've just had lunch with a friend who paid for it. Are the economists incorrect?

A manager notices the company's sales personnel are offering its customers deals that, while increasing revenues, are lowering profits. After reviewing the company's compensation plan, the manager finds bonuses are based on sales revenue. Explain the sales personnel's behavior using the economic principle that "people respond to incentives" and recommend a change to the compensation plan to correct this problem.

You have 8 hours to study for two final exams. The exam for course A is worth 25% of your grade and the exam for course B is worth 50% of your grade. The first hour you spend on studying for either exam will increase your score on it by 10 percentage points, the second hour will increase your grade on it by an additional 9 percentage points, the third hour will increase your grade on it by an additional 8 percentage points, and so forth. How will you allocate your time? Explain your answer in terms of marginal analysis.

How do increasing opportunity costs affect the shape of the production possibilities curve? Provide an example that illustrates the concept of increasing opportunity costs. Include a graph or illustration to support your answer.

Assume country A has an absolute advantage in producing all products compared to country B but country B has a comparative advantage in producing several products. Are there opportunities for gains from trade? If so, what determines the direction of trade?

Explain how international trade allows a country to move beyond its production possibilities frontier and create gains from trade.