Question

puse of the Assignments is to assess the student in each unit to practical problem-solving scenarios. lent's ability to apply the economic concepts learned Instructions ATV 000 for your purchase y cost of one ATV? Students are to complete the exercises in Word (or so for evaluation. crises in Word (or some other compatible word processor) and submit Questions 1. The purpose of economics is to provide a way to recognize that because of scarcity something cannot Consequently, we must make our decisions by com tradeoffs. In doing so, five principles of economic comics is to provide a way to think. Economic thinking and decision-making scarcity something cannot be obtained without giving up something else. make our decisions by comparing the costs and benefits and evaluating the so, five principles of economic thought come into play: tradeoffs, incentives, unity costs, marginal thinking, and voluntary exchange. Explain with a specific example of each ow you apply these five principles of economic thought in your everyday life. Table 1-1 Pears Apples Possible Output Combinations of kilos) 70 (thousands (thousands of kilos)

Answer 1

d. If farm is producing at point G, then the opportunity cost of producing more and more apple is increasing in terms of pears. From point G to F , the opportunity cost of 10,000 extra apple is 3000 pears. Again from point F to E the opportunity cost of 10,000 extra pears is 4000. Again from E to D opportunity cost in terms of pears is 8000. So it is increasing.

Peart 65) (10,63) (20,60) (30.56) (40,48) 45- uation. 40 35 (5e,36) Froutier 30 25- 20 (60.20) 15 10 40,01 15 20 25 30 35 40 45 65 70 60 AHples At Brorin 'D' the ARAle prduetion is 40 thous.ands. 6- Kilos anw Peard brductiom in 48 thousand * entra it prink E, f appole is ef fruit farm is eurrently prazucing at forinl- D, then sfiportunily Lo so00 kilrs of peans wankto pduce then sthortunity eoik interms (4D,000-3000D)= 10,010, 10,000 uore and morepears is er deelines m contanl. ह थि 40 20-20-10.