Read chapter 1 of your textbook and answer the following discussion question:
Question No. 1:
What is meant when one says that decisions are made at the margin? Provide an example of making a decision at the margin.
Read chapter 2 of your textbook and answer the following discussion question:
Question No. 2:
Even though person A has an absolute advantage over person B both at producing good X and at producing good Y, it can still make sense for persons A and B to engage in trade involving goods X and Y. Explain why this is so.
Read chapter 3 of your textbook and answer the following discussion question:
Question No. 3:
Macroeconomists often say: “The reason we have inflation is that everyone expects inflation.” Using the model of supply and demand, explain what happens to price when both consumers and producers expect the price of a particular good to increase in the future.
INSTRUCTIONS TO WRITE AND SUBMIT GORDON RULE ASSIGNMENT No. 1:
1. Write an answer for each question. Use economic terminology used in your textbook. Check your spelling and grammar (Gordon Rule requirement evaluates writing and reading skills).
2. Write a paragraph for each answer and a minimum of 500 words in TOTAL. (500 words for total of three answer)
3. Work on this assignment as we cover the material in class. Do not forget to submit your discussion assignment on due date.