1. Watch the following video and respond to the questions below:
(31) Episode 2: Scarcity and Choice – YouTube
What is your initial reaction to the study of economics, specifically the economic way of thinking? Is scarcity a physical reality or a human construct, and why would it matter? What is the role of private property and money in the “scarcity” clash and “choice” problem? You may want to address the role of opportunity cost, which you will find discussed in Chapter Two.
2. What is the relationship between a student’s grade point average and the number of hours spent studying per week. How would this relationship be graphed? Now you consider two other variables and determine the relationship between them and indicate how the relationship would be graphed. Explain why you think the relationship would be as you argue.
3. Describe at least one government policy that you believe would be effective in increasing our nations’ production possibilities (creating economic growth) and therefore increasing our nation’s average absolute standard of living. Support your recommendation.
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