The week 1 homework challenges students to demonstrate an understanding of the economics perspective and the production possibilities model. Students should study the principles and concepts related to the economics perspective and the production possibilities model using the four weekly learning tools prior to completing the homework. The homework questions prepare students for the quiz and to participate in the weekly discussion. Answer the following 10 questions.

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:

	A	B	C	D	E	F
Capital goods	0	1	2	3	4	5
Consumer goods	40	38	34	28	18	0

1. Assume the economy is producing 2 capital goods and 25 consumer goods. In economic terms, what does this level of production represent?
2. If the table represents production possibility for the time being, what does a level of 4 capital goods and 31 consumer goods represent.
3. 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?
4. What is the shape of the production possibility curve under consideration? What does the shape of the curve mean in economic terms? Explain.
5. Other things equal, what are the economic implications for the future of choosing point B on the curve vs. point D on the curve?
6. 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.

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Homework Grading Rubric (1) (1)
Criteria	Ratings	Pts
Degree of Effort	50 to >44 pts Excellent Homework demonstrates high degree of effort. Clear evidence of economic effort to answer all questions. 44 to >39 pts Good Homework demonstrates adequate effort. Evidence displays decent effort to answer all questions. 39 to >29 pts Poor Homework lacking significant effort. 29 to >0 pts Unacceptable Homework displays unacceptable level of effort.	/ 50 pts
Economic Accuracy	30 to >24 pts Excellent Homework displays high degree of accurate answers. 24 to >19 pts Good Homework displays adequate correctness. 19 to >9 pts Poor Homework fails to display correct answers. 9 to >0 pts Unacceptable Homework fails to display any accuracy.	/ 30 pts
Timeliness	20 pts On Time Homework submitted before deadline. 0 pts Not on Time Homework submitted after due date.	/ 20 pts
Total Points: 0