Choose 2 of the following questions to answer.
Your responses should be 1-2 paragraphs in length. Each paragraph should have a minimum of 5-6 sentences.
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? What do economists call this?
2. Think about how demand and supply may change over time given certain events. Consider your own purchasing habits and how they have changed over time. What are the non-price items that effect shifts in demand or supply? What are the effects in the short-run and the long-run?
3. Given that the government interferes with the invisible hand and creates overproduction and underproduction in the supply. Describe what causes the dead weight loss in over and under production.