Writing assignment
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Homework1.docxUnit 1 Assignment: The 12 Principles of Economics
In this Assignment, you will apply the 12 Principles of Economics to different scenarios.
Unit1_Assignment_
Rubric.pdf
Unit 1 [204]
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Unit 1 Assignment: The 12 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. 3. Your answers should follow APA formatting by being in double-spaced paragraph format, with
citations to your sources and, at the bottom of your last page, a list of references. Your answers should also be in Standard English with correct spelling, punctuation, grammar, and style.
4. Respond to the questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions. Your answers should be highly organized, logical, and focused.
Assignment
Each scenario below practices one of the 12 Principles of Economics. Match the principles to the appropriate scenario listed and justify your answer. A principle will only be used once, and not all principles are used.
The 12 Principles of Economics:
1. People must make choices because resources are scarce.
2. The opportunity cost of an item — what you must give up in order to get it — is its true cost.
3. “How much” decisions require making trade-offs at the margin: comparing the costs and benefits of doing a little bit more of an activity versus doing a little bit less.
4. People usually respond to incentives, exploiting opportunities to make themselves better off.
5. There are gains from trade.
6. Because people respond to incentives, markets move toward equilibrium.
7. Resources should be used as efficiently as possible to achieve society’s goals.
8. Because people usually exploit gains from trade, markets usually lead to efficiency.
9. When markets don’t achieve efficiency, government intervention can improve society’s welfare.
10. One person’s spending is another person’s income.
11. Overall spending sometimes gets out of line with the economy’s productive capacity.
12. Government policies can change spending.
Unit 1 [204]
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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 take with you on a trip.
3. At a restaurant, when ordering an entrée, you get to choose two side dishes from a group of five side dishes.
4. Instead of growing your own food and making other necessities you decide to specialize in a particular profession and purchase things, even things that you would have not been able to make
yourself.
5. There is an incredible variety of goods and services available at many different price points even though no single entity or government is deciding or dictating the market what to do.
6. In its effort to limit the effects of rising inflation, the Federal Reserve System reduces the quantity of money in the economy, but sees an increase in unemployment
7. While consuming the same amount of farmers’ labor and capital the newly developed hybrid crops
achieve twice the yields of the previous crops.
8. You have noticed that the same amount of money buys you fewer goods and services than it did a year ago.
9. You worked for extra pay on a holiday and therefore missed out on your neighbor's’ barbeque.
10. Two major suppliers of powdered baby food formula are challenged by government on grounds of price fixing.
Directions for Submitting Your Assignment Before you submit your Assignment, you should save your work on your computer in a location and
with a name that you will remember. Make sure your Assignment is in the appropriate template provided. Then, when you are ready, you may submit to the Dropbox.
Unit 1 Assignment: The 12 Principles of Economics Points Possible
Points Earned
Criteria
Correct matching and explanation for each question. 40
Writing Style, Grammar, and APA Format 10
Total 50
Unit1_Template.doc
x
[204] Unit 1 Assignment Template
The 12 Principles of Economics:
1. People must make choices because resources are scarce.
2. The opportunity cost of an item — what you must give up in order to get it — is its true cost.
3. “How much” decisions require making trade-offs at the margin: comparing the costs and benefits of doing a little bit more of an activity versus doing a little bit less.
4. People usually respond to incentives, exploiting opportunities to make themselves better off.
5. There are gains from trade.
6. Because people respond to incentives, markets move toward equilibrium.
7. Resources should be used as efficiently as possible to achieve society’s goals.
8. Because people usually exploit gains from trade, markets usually lead to efficiency.
9. When markets don’t achieve efficiency, government intervention can improve society’s welfare.
10. One person’s spending is another person’s income.
11. Overall spending sometimes gets out of line with the economy’s productive capacity.
12. Government policies can change spending.
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 take with you on a trip.
3. At a restaurant, when ordering an entrée, you get to choose two side dishes from a group of five side dishes.
4. Instead of growing your own food and making other necessities you decide to specialize in a particular profession and purchase things, even things that you would have not been able to make yourself.
5. There is an incredible variety of goods and services available at many different price points even though no single entity or government is deciding or dictating the market what to do.
6. In its effort to limit the effects of rising inflation, the Federal Reserve System reduces the quantity of money in the economy, but sees an increase in unemployment
7. While consuming the same amount of farmers’ labor and capital the newly developed hybrid crops achieve twice the yields of the previous crops.
8. You have noticed that the same amount of money buys you fewer goods and services than it did a year ago.
9. You worked for extra pay on a holiday and therefore missed out on your neighbor's’ barbeque.
10. Two major suppliers of powdered baby food formula are challenged by government on grounds of price fixing.
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