Macroeconomics, 9/e

Campbell R. McConnell, University of Nebraska, Lincoln
Stanley L. Brue, Pacific Lutheran University
Thomas P. Barbiero, Ryerson University

The Economic Problem: Scarcity, Wants, and Choices

Internet Application Questions


1		Go to http://www.cma.ca/cmaj/vol-162/issue-6/0880.htm Why is this article a good example of the effects of scarcity on society?



2		How has the existence of scarcity for medical professionals forced certain choices upon them?



3		What are some things that can be done to reduce scarcity within the health care system?



4		Go to http://credit.about.com/library/weekly/aa081100a.htm?once=true&rnk=r1&terms Suppose you decide to buy a used car today for $1,000. According to Michael Kilian, what would be the opportunity cost of purchasing this car?



5		Thinking of the article, what is the opportunity cost of spending money on goods and services today? Why does Michael Kilian focus so much on all the things he has purchased around his house, and is there a financial lesson here?



6		Suppose a student earns $8.00 per hour conducting market research surveys. If the student purchases a $1,000 computer system, what would be the opportunity cost in hours? Assuming the student only works 20 hours per week, what would be the opportunity cost in weeks and months?



7		How does one determine whether a purchase like the one above was "worth it" or not? Use the concept of opportunity cost in your answer.

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