1. One of the scarce resources that constrain our behavior is time.
Each of us has only 24 hours in a day.How do you go about allocating your time in a given day among competing alternatives?
How do you go about weighing the alternatives? Once you choose a most important use of time, why do you not spend all your time on it? Use the notion of opportunity cost in your answer.
2. Which of the following statements are examples of positive economic analysis? Which are examples of normative analysis?
a. The inheritance tax should be repealed because it is unfair.
b. Allowing Chile to join NAFTA would cause wine prices in the United States to drop.
c. The first priorities of the new regime in the Democratic Republic of Congo (DRC, formerly Zaire) should be to rebuild schools and highways and to provide basic health care