1. Economics studies choices that arise from one fact. What is that fact?
* Aside from the fact that there is scarcity, human wants/needs are insatiable.
2. Provide three examples of wants in the country today that are specially pressing but not satisfied.
a. Quality Education
b. Proper Health Care Benefit
c. Clean Drinking Water
3. Provide two examples of the post hoc fallacy.
a. Bill purchases a new PowerMac and it works fine for months. He then buys and installs a new piece of software. The next time he starts up his Mac, it freezes. Bill concludes that the software must be the cause of the freeze.
b. Joan is scratched by a cat while visiting her friend. Two days later she comes down with a fever. Joan concludes that the cat's scratch must be the cause of her illness.
4. Check your local media for headlines that concern three microeconomics issues and three macroeconomics issues
Microeconomic issues
a. BDO issues $5 billion notes
b. Maynilad expanding service to South
c. Mazda to stop making cars in the US
Macroeconomic issues
a. Import-export imbalance
b. Decline of the Philippine Peso
c. Reliance to remittance
5. Match the following headlines with the What, How, and For whom questions:
a. With more research, we will cure cancer. - HOW
b. A good education is the right of every child. - WHAT
c. What will the government do with its budget surplus? – FOR WHOM
6 Classify each of the following statements as positive or normative:
a. There is too much poverty in the United States. NORMATIVE
b. An increase in the gas tax will cut pollution. NORMATIVE
c. Cuts to social security in the United States have been too deep. NORMATIVE
7, Classify each of the following statements as positive or normative:
a. More scholarships to students from poor families will reduce U.S. poverty- POSITIVE
b. Free trade will harm developing countries. - NORMATIVE
c. Cuts to public...