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Tuesday, September 1, 2009

Please read pages 7-16 in the Economics book. Complete the questions handout given in class. If you need them, here are the questions:

Introduction to Economics
Lesson 1


Directions: After reading pages 7 – 16 in your textbook please answer these questions in Complete Sentences when needed. The notes taken in class will help, too. See you tomorrow.

1. What is the difference between goods and services?

2. Was Food From the ‘Hood a company that provided goods, or did they provide services? Explain and give examples.

3. The study of economics is divided into two parts – microeconomics and macroeconomics. Please explain the difference between each.

4. Now that you know the difference between microeconomics and macroeconomics, for the following situations below indicate whether it is a micro or macroeconomic decision.

a. Coca Cola Inc. decides to create a new soft drink – Markwald Coke!
b. The Federal Reserve System of the United States government decides to lower the interest rate it charges banks when they borrow money.
c. Mr. M chooses to get a haircut instead of buying lottery tickets.
d. The government of the United Kingdom in an attempt to keep its currency strong chooses not to enter the European Economic Union.

5. What is the difference between a WANT and a NEED? Give example of each.

6 A chart of the productive resources (factors of production) has been placed below. Please identify the productive resources in the paragraph below and place them under the appropriate category. (There are 5!)

Fantastico Jeans Inc. is in the business of; yes you guessed it, producing jeans! This innovative company was created by the business whiz Mr. Joe Hardy. Each day at Fantastico Jeans Inc. bundles of cotton arrive by a company semi-truck. Laborers unload the trucks with forklifts and use sewing machines to piece together the eventual product. The finished jeans are then ready for shipment.

Natural Human Capital Entrepreneur






7. Which of the four basic economic questions is missing from the paragraph below?

Markwald Food and Beverage Inc. is currently producing a new chocolate and fudge tasting soft drink. The chocolate and fudge ingredients are bought from a company in South America and brought to the factory. At the factory, the ingredients are mixed in a heated tank with a soda solution. The thirst quenching soft drink is then cooled in a holding bin and eventually poured into bottles and cans in a machine called the mega bottler. The company has chosen to produce one thousand bottles and cans a day.