Corning Glass Works International (a) Essay

7167 WordsApr 21, 201329 Pages
1 The Scope and Method of Economics Why Study Economics? 1. Define the term economics. Economics is the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided. Diff: 1 Skill: Definition Topic: economics AACSB: 2. Review the following statement. “He who has choice has pain.” What is meant by this? “He who has choice has pain” refers to the sad but unavoidable fact that whatever we decide to do is going to have a cost. If we decide to buy a hamburger it means we can’t buy a chicken sandwich. The sentence is primarily focused on the idea that all choices involve opportunity costs. Diff: 1 Skill: Conceptual Topic: choice AACSB: 3. List four reasons to study economics. (1.) Learn a way of thinking. (2.) Understand society. (3.) Understand global affairs. (4.) Be an informed voter. Diff: 1 Skill: Factual Topic: economics AACSB: 4. Explain what is meant by the term opportunity cost. The opportunity cost of something is measured by the next best alternative that we forgo, or give up, when we make a choice or a decision. Diff: 1 Skill: Definition Topic: opportunity cost AACSB: 5. Explain how and why an all-volunteer army may actually be cheaper than an army staffed with drafted soldiers. When men and women decide on their own to choose to join the military they are no doubt looking at their opportunity cost. If they elect to join they are signaling that their opportunity costs are lower compared to other choices they could have made. When people are drafted into the military their opportunity costs are not taken into account. As a result doctors, lawyers, engineers and other high-paid professional can be drafted just as easily as those in lower-paying occupations.

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