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 (125-250 words).
1. Briefly explain the resources used as inputs to produce output, and provide an example of each resource.
2. Watch the following news video below.
This video clip examines supply and demand of oil. Please discuss the impacts that oil prices have on the economy . What happens when to oil prices when the economy slows versus when it is growing?
3. Consider products that you use in your everyday life. Provide an explanation and at least one example of a normal good, an inferior good, substitutes, and complements.
4. Explain why an increase in quantity supplied is not the same as an increase in supply. Which of these would be associated with a rightward shift in the supply curve? What non-price determinants could lead to a shift in the supply curve? Which would be associated with a movement up the supply curve? What non-price determinants could shift that supply curve?
5. Consider the following scenario and state the expected change in the supply or demand curve. You should note whether the scenario indicates a shift of the curve or movement along the curve.
Scenario: You are a supplier of widgets. The technology that is available to produce your product suddenly improves.