Reference no: EM132134136

Fully answer the assigned questions in narrative, third person format. The paper consist of 1200 WORDS.

Also, include at least three (3) scholarly sources in your responses. Paper must be completed in APA format. NO PLAGIARISM!

1. Write a short essay explaining the four primary groups of production. Include in your explanation an example of each group as well as what we call the payment each group receives.

2.(a) What do economists mean by the acronym TANSTAAFL.

(b) How would this concept apply to the policy of giving everyone "free" college tuition? Use the concepts of efficiency and equity to support your explanation.

3.(a) Suppose you earn a $10,000 cash bonus at your job. You use all of the money to purchase a car. Explain how both the cash and the automobile would flow through the Circular Flow diagram. Be sure to include both the product and factor markets as well as households and firms in your description.

(b) Draw a circular flow diagram and place it in the Drop Box to support your explanation.

[You may draw your diagram by hand and take a photo with your phone. E-mail the photo to yourself and download the photo or save to Google Drive. You will then be able to upload it to the Drop Box.]

4.On the production possibilities curve (PPC), there are points that are not attainable (N), efficient, and inefficient (I).

(a) Briefly explain where an economy would prefer to be on the PPC.

(b) Can the economy operate at point N? Explain why or why not.

(c) Can the economy operate at point I? Explain why or why not.

5.(a) Explain, in your own words, the Law of Increasing Opportunity Cost.

(b) What is the reason for the law?

(c) Give a brief example where you have observed this law in your own life.