Name: Trn Diu Linh

Class: BA-K3

TUTORIAL 1

1. Scarcity is an important concept for two reasons: It creates competition for

resources and forces trade-offs on the part of every participant in the economy.
The study of economics talks about how organizations make choices.
If scarcity disappeared, the study of economic would change: Companies,
organizations would not think about anything like materials, labor and another
resources because they are not afraid of scarcity, they dont need to think how to
get the resources to compete with their competitors.
2. Suppose I got out to lunch with my wealthy but boring uncle. He pays for meal. It
does not violate the economic concept that There is no such thing as a free
lunch. Because I have to spend time eating with my uncle. If I did not have meal
with him, I would do anything in that time.
3. The system failed to halt the spread of possums in New Zealand because maybe
the bounty is not high enough to attract people to spend their time catching. In this
situation, it has an opportunity cost: people can choose to catch possums or they
can do another work which benefit them than go to catch possums.
4. (1) Hurricane damages banana plantations in QLD.
(2) Consumption of banana in NWS falls, while consumption of oranges and
apples increases.
Because (1) so the quantity of banana reduces, that makes price of banana
increase. Price of banana is higher and higher so that consumers can not purchase
banana and they will choose another fruit instead of banana (here is oranges and
apples). That consumers choice causes consumption of oranges and apples
increases.
5. Prohibit the creation any pollution
1

 Benefits:
- Reduce pollution
- Protect the air, land, water
- Protect peoples health
- No global warming

Costs:
- Companies, factories have to change their technology
- People and organization have to spend more money to get some gadgets
which is friendly with environment.
- Some companies cannot change all new technology so they cannot run their
firms anymore.
7.
a. Positive statement. Because it is testable.
b. Normative statement. Because it is answered for the question what ought to be.
c. Positive statement. Because it is testable.
d. Normative statement. Because it cannot be proved.
e. Positive statement. Because it does not have to be corrected.
f. Normative statement. Because it can be disproved.
g. Positive statement. Because it does not have to be corrected.
h. Normative statement. Because it can be disproved.
6. Production possibilities frontier:
a.

Milk
2

Eggs

b.

Milk

Eggs

c.
Milk

Eggs

d.

Milk

Eggs

e.

Milk

Eggs
f.
Milk

Eggs

g.

Milk

B
A

Eggs