Chapter 1 Assignment
Section 1 –
1. Create a diagram that illustrates (gives an example) of each type of resource.
a. Human Resources
b. Natural Resources
c. Capital Resources
2. Create another diagram that illustrates the difference between a good and a service. Define
each of them.
3. Explain the expression – “There is no such thing as a free lunch”
Section 2 –
1. Define microeconomics and macroeconomics.
2. What is the difference between a normative statement and a positive statement?
3. Why do economists use the term “rational?”
4. Using Word or Publisher, create a circular flow model using the following information. (Place
each of the following in the correct location)
b. Your House
Section 3 –
1. Define Opportunity Cost.
2. What is sunk cost?
3. Describe what your opportunity cost would be if you had $100 to spend. Determine what you
would spend it on and what your opportunity cost would be.