Math_Problems

Page 14. 1a) Steaks – They are an economic good as they are a capital resource. 1b) Houses – They also are an economic good and a capital resource. 1c) Cars – Same as above. 1d) Garbage – They are not an economic good. Garbage is not produced by an economic means. 1e) T-shirts – They are an economic good. They are produced and are a capital resource. 3) Diamonds are scarcer than water and diamonds being a specialized product, they are harder to acquire. Also with the high price tag associated with diamonds, it makes it even more difficult and scarce. 7) There are always consequences associated with a “free lunch.” Typically there are ulterior motives when an individual invites someone to a free lunch. Technically from a financial perspective, the lunch would be free, however there may be other “fees” associated with the lunch. 8) With individuals having previous experience along with a schooling background, over time these individuals should prove to be better than anyone off the street. The author believes there will be an increase in output due to the fact that these individuals have a stronger skill set and will be able to adapt better to their conditions. Excercises and Applications 1) Parking would not be scarce based off the article. There seems to be enough parking per citizen however the mentality of the citizens may be the problem. 3) Mr. Safi makes a tremendous amount of money per hour at his current position that if he spent any amount of time cutting the grass, he would feel that is losing money.