Azucena Jaime
Assignment One
1. Two economic analysis are normative and positive.
An example of a normative analysis is, Should the government have free health care?
Following that, an example of positive analysis would be, if the government were to offer
free health care, how would this affect taxpayers? Another example of normative would
be, Should employers offer free daycare services?
2
a. Opportunity cost-What is one willing to risk (give up) to have it all.
b. Ceteris paribus-Variables that are controlled.
c. Marginal change- When an individual decides to put extra time into something, what
be the result
d. Scarcity- Shortage of resources
e. Production possibilities curve- A chart that shows the different combinations to
produce one item
f. Principle of diminishing returns- When one item is held a controlled pace and the
others stay the same
g. Real value- The actual value of currency
h. Human capital- The work put into making a profit
i. Natural Resources- Natural resources that the earth provides to make materials
j. Factors of production- Supplies that are used to make a profit
3. What economist mean when they say “real”, they mean the actual value and events.
The government increased minimum wage and by doing so it affected the cost standard
basket of goods. Yes, this is a problem because it made the cost of living more expensive
from the employers to employees. We can stabilize the costs.
4.The opportunity cost would be $3,000.