Answer each of the questions below in short-answer format. Write your responses in completesentences. Your answers to ea...

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Answer each of the questions below in short-answer format. Write your responses in complete
sentences. Your answers to each question should include 2-3 paragraphs.
Be sure to carefully read each question to ensure that each component is answered with the
appropriate depth and detail. Assignment questions are cumulative, meaning they will have
questions from the current and previous lessons. Your answers should be free of spelling and
grammar errors. When you use reference material, you must properly cite your sources with intext citations. You must also include a reference list. All documentation must be rendered in APA
citation style. (See announcements for details on APA.)

2)
1. Explain Opportunity Cost and provide an example.

2. What is the difference between absolute advantage and comparative advantage? What is the
benefit of trade?

3. Provide a brief description of supply and demand. How is equilibrium used to determine the
market price and quantity?

4. Give an overview of what an inferior good is. What will happen when consumer incomes
increase? Include an example from your own life.

5. Minimum wage is a price floor. Explain some of the impacts that a price floor on the price of
labor may cause.
4)
1. What is the price elasticity of demand? How is the price elasticity of demand calculated?

2. Why is time such an important determinant in the elasticity of supply? Is time also important
in determining price elasticity of demand? Explain.

3. What is marginal utility? Why is the term marginal important in utility analysis?

4. Describe and explain the three principal methods of financing that are used by corporations.

5. What is the random walk theory? Explain.










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