Your company has partnered with the Council on Aging to host a “Lunch and Learn.” This is an opportunity for adults aged 55 or older to learn more about the subjects they find interesting, all while they enjoy lunch together. This session will be held at your local senior center and is titled “Economic Decision Making.” A few people have submitted their questions ahead of time. You will be representing your company at this session and are responsible for addressing the questions listed below:
Click each of the items below for more information on this Assessment.
Question 1
What are the key differences between scarce and free resources? How are they allocated? What can cause a free resource to become a scarce resource? Can you provide some examples so I can better understand this topic?
A typical response will be 75–150 words (1–2 paragraphs). Be sure to reference at least one scholarly source to support your answer.
Question 2
Economists argue there is “no such thing as a free lunch,” yet I just had lunch with a friend who paid for it! Are the economists incorrect? Explain using basic principles of economics.
A typical response will be 75–150 words (1–2 paragraphs). Be sure to reference at least one scholarly source to support your answer.
Question 3
I once read about a manager who noticed the company’s sales personnel were offering its customers deals that, while increasing revenues, lowered profits. After he reviewed the company’s compensation plan, the manager discovered that bonuses were based on sales revenue. Can you explain the sales personnel’s behavior using the economic principle that “people respond to incentives”? What kinds of changes might you recommend to the compensation plan to correct this problem?
A typical response will be 75–150 words (1–2 paragraphs). Be sure to reference at least one scholarly source to support your answer.
Question 4
Assume country A has an absolute advantage in producing all products compared to country B. Are there opportunities for gains from trade for both countries? Please provide at least 2 examples. What determines the direction of trade?
A typical response will be 75–150 words (1–2 paragraphs). Be sure to reference at least one scholarly source to support your answer.
Question 5
How does international trade allow a country to move beyond its production possibilities frontier? Can you please elaborate on this and provide 1 or 2 examples?
A typical response will be 75–150 words (1–2 paragraphs). Be sure to reference at least one scholarly source to support your answer.