Econ Tutorial

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UNIVERSITY OF TECHNOLOGY, JAMAICA SCHOOL OF BUSINESS ADMINSTRATION ECO 1001: INTRODUCTION TO MICROECONOMICS TUTORIAL #1 1. Which of the following is the best definition of economics? a) The study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided. b) The study of how consumers spend their income. c) The study of how business firms decide what inputs to hire and what outputs to produce. d) The study of how the Jamaican government allocates tax dollars. 2. Competitive behaviour a) occurs as a reaction to scarcity. b) occurs only in a market system. c) occurs only when the government allocates goods and…show more content…
Briefly describe the three primary methods of resource allocation that have evolved to answer these questions. 7. Discuss three reasons why specialization could lead to a higher standard of living. 8. Differentiate between comparative advantage and absolute advantage. Which is more important from an economic viewpoint? The table below shows the number of computers and aero planes produced by two firms using the same quantities of resources. | |Computers |Aero planes | |Firm A |220 |100 | |Firm B |130 |80 | 9. Firm A has a(an) a) comparative advantage in the production of computers. b) comparative advantage in the production of aeroplanes. c) absolute advantage in production of aeroplanes only. d) absolute advantage in the production of computers only. Use the following information to answer Questions 10 and 11. | |Labour Required | | |1 Window Washed |1 Rug Cleaned | |Mary |2 hours |10 hours | |Peter |3 hours |12 hours | 10. Which of the following statement is true? a) Mary has an absolute advantage in both washing windows and cleaning rugs. b) Peter has an absolute advantage in
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