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Try to answer each of the questions on a piece of paper. When you are finished, watch the videos next to each question to get the solution. These will only be as helpful as you make them. Answer first, watch second.
Try to answer each of the questions on a piece of paper. When you are finished, watch the videos next to each question to get the solution. These will only be as helpful as you make them. Answer first, watch second.
1.
1.
Define scarcity and determine whether or not air is a scarce resource.
2.
2.
Adrienne is a farmer who chooses each season whether to grow wheat or corn. It costs Adrienne $8,000 to grow wheat and $10,000 to grow corn. This year she estimates that if she chooses to grow wheat, she will be able to sell what she grows for $15,000. Alternatively, if she chooses to grow corn, she will be able to sell what she grows for $16,000. What is the opportunity cost of choosing to grow wheat? What is the opportunity cost of choosing to crow corn?
3.
3.
What is the cost of seeing a movie at the movie theater? What is the opportunity cost of seeing a movie at the movie theater? How are those things different?
4.
4.
In the country where Adrienne lives, all of the farmers choose to produce either wheat or corn. Depending on which farmers choose which crop to grow, the following levels of production are possible for the country:
0 lbs of Wheat & 2,000 lbs of Corn
500 lbs of Wheat & 1,750 lbs of Corn
1,000 lbs of Wheat & 1,350 lbs of Corn
1,500 lbs of Wheat & 750 lbs of Corn
2,000 lbs of Wheat & 0 lbs of Corn
Draw the Production Possibilities Curve (PPC) for this country.
5.
5.
Referring to Question 4, what is the opportunity cost of growing an additional 500 lbs of Wheat?
6.
6.
Can this country choose to grow 500 lbs of wheat and 1,925 lbs of corn? If an improvement in growing corn allows the country to grow 10% more corn at every point on the PPC compared to before, would they be able to grow 500 lbs of wheat and 1,925 lbs of corn? How would that look on the PPC graph?
Module 1 Quick Quiz
Module 1 Quick Quiz
Now that you have watched all the videos and tried all of the example problems, see how you do on this short quiz. If you score under 75%, consider reaching out to your course instructor for some advice.
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