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ECO 3010
Assignment #1 Answer Key
1) How does economics differ from the other social sciences? (10 points)
Economics differ from other social sciences because we focus on the individual instead of
focusing on groups to which the individuals belong to and the analysis of the characteristics
of those groups. The individual makes dynamic choices in the face of uncertainty given
constraints (time and budget) which place limits on those decisions. Individuals do their best
such that their decisions are consistent with attaining an objective with the best outcome
possible. A
2) Discuss which aspect of the economic analysis of art is concerned with creativity and how it
relates to the fundamental problem of economics. (18 points)
The definition of art (the expression or application of human creativity, skill, and
imagination that produces works to be appreciated primarily for their beauty or emotional
power) implies that an important input in its production is creativity. Since creativity enters
the production process, it is consistent with the fundamental problem of how to allocate
