They arise due to the need to make choices as there are scarce resources.
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15
What is the Marxist view on the value of goods? What is one potential criticism?
Labor theory of value; but value of good also affected by utility!
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monster
Reset all scores!
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rocket
Go to first place!
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fairy
Take points!
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25
banana
Go to last place!
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15
Provide an example of a normative and a positive statement in Economics.
Positive: raising income taxes decreases consumption, normative: the government should raise income taxes to increase its budget.
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15
Explain why economics is considered a "social science".
Scientific methodology to build knowledge (scientific) + deals with human behavior (social)
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20
What is Pareto efficiency? How is it illustrated on the PPC?
A firm / economy that is operating on the curve is Pareto efficient - one cannot be better off without making another worse off.
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lifesaver
Give 25 points!
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gift
Win 20 points!
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shark
Other team loses 20 points!
Okay!
banana
Go to last place!
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banana
Go to last place!
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fairy
Take points!
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shark
Other team loses 5 points!
Okay!
baam
Lose 10 points!
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10
Using an example, explain the opportunity cost that a private company might face when it comes to its daily operations.
The opportunity cost of funding a new product may be to expand into a new geographical location, assuming it's the best choice forgone.
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15
Distinguish between Obama and Richard Burrโs views on the role of the government in managing the economy.
Obama = government spending to decrease unemployment, rejected the view that the government has no role; Burr says government spending money does not work!
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20
Using a PPC, draw out a scenario of "actual growth"
Must be fully labeled; PPC does NOT shift outward.
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20
Using a PPC, illustrate a scenario in which there is a constant opportunity cost between two goods (use actual goods)
E.g. farming goods, same colored pens
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20
What are the three basic economic questions? Briefly elaborate.
What to produce, how to produce, for whom to produce.
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15
Briefly summarize Jean-Baptiste Say's views on economics.
supported the laissez faire approach and believed that โsupply creates its own demandโ
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20
Due to COVID-19, the HK government issued consumption vouchers to the general public. Relate this decision back to THREE WiSE ChOICES concepts.
Intervention (e.g. intervene to stabilize economy), choice (helping the economy heres means giving up the choice to spend elsewhere), equity