Ch.+1+Review

Ch. 1 Review questions #1-7, 9-16 9. Land is scarce because things in nature can run out, such as oil. Labor is scarce because workers are fired and re-hired and some die we aren't immortal or indestructible. Capital is scarce because the material we use for the machines and resources we use to complete tasks will not always be there. 10. a. Buys more oil, but the prices are raised because they are running low, so we have to raise prices back home b. Agrees to a treaty of another country protecting his country, but he must give up some of his crops c. Decides to take the raise, but needs to pay a higher tax d. Does not take the raise, looses money but doesn't pay a higher tax 11. shows alternative ways to use and economy's productive resources, an economies growth or downfall, goods and services 12. As one production switches from one item to another, more and more resources are necessary to increase production of the second item, therefore ,the opportunity cost increases 13. The railroads did create the benefits of physical capital because it made it easier and took less time to transport goods and people and in the long run the cost was less. 14. Police- protects the people and prevents crimes, government needs to pay them Firefighter- protects people from fires, government needs to pay them Hospitals- takes care of people, but are very expensive 15. The ones that consider them a fourth factor to land, labor, and capital, because some create products for capital, create products from land and they boost the economy. 16. Today I decided to not sleep, but in return I was able to finish my Economics homework and study for my math test and English quizzes. I also put hanging out with my friends aside because i needed to finish a lot of homework.
 * 1) Scarcity
 * 2) trade-offs
 * 3) land
 * 4) guns and butter
 * 5) opportunity cost
 * 6) entrepreneur
 * 7) underutilizing