Bu 2014 Essay

532 WordsMay 19, 20153 Pages
Unit 1 [BU204: Macroeconomics] Unit 1 Assignment: The Ten Principles of Economics 1. Your Assignment should have a cover sheet with the following information: ● ● ● ● Your Name Course Number Section Number Date 2. You may submit your Assignment using the Unit 1 Assignment template, renaming it as required in item 3 below. 3. Unless otherwise instructed by your instructor, your completed Assignment should be saved with the following file name format: course number, an underscore, section number, an underscore, your LAST name, underscore, your FIRST name, an underscore, the unit number, an underscore, and the word “Assignment.” It will look like this: BU204_section number_LAST_FIRST_ Unit number_ Assignment. (BU204_2_Smith_Tina_Unit 1_Assignment.docx) Each scenario below practices one of the Ten Principles of Economics. Match the principles to the appropriate scenario listed and justify your answer. Each principle will only be used once. Refer to Chapter 1 for the details on the principles of economics. Also, watch the Chapter 1 “Why Does Economics Matter” Video. Ten Principles of Economics: 1. People Face Trade-offs. 2. The Cost of Something Is What You Give Up to Get It. 3. Rational People Think at the Margin. 4. People Respond to Incentives. 5. Trade Can Make Everyone Better Off. 6. Markets Are Usually a Good Way to Organize Economic Activity. 7. Governments Can Sometimes Improve Market Outcomes. 8. A Country’s Standard of Living Depends on Its Ability to Produce Goods and Services. 9. Prices Rise When the Government Prints Too Much Money. 10. Society Faces a Short-Run Trade-off between Inflation and Unemployment. Scenarios 1. Even though generally more expensive, energy efficient appliances and vehicles sell better with a rebate or tax credit. 2. Airlines will charge a fee for each additional suitcase you may want to

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