Here is an example of a question along with a possible answer. Please note the format. Please do not write your answers in the standard block paragraph format! This is by no means the perfect answer. It could certainly be better. But, I wanted to give you a sense of what I am looking for in an answer. Question: Please thoroughly and completely explain the law of demand. Answer:  Definition of the law of demand o Demand is a schedule or curve that shows the various amounts of a product that consumers are willing and able to purchase at each of a series of possible prices during a specified period of time.  The law of demand tells us that there is an inverse relationship between price and quantity demanded. This is supported by the following three concepts:  Diminishing marginal utility which means consumption of successive units of a particular product will yield less and less marginal utility. o Marginal utility – the change in utility that results from a one-unit change in the consumption of a good or service. o The income effect - which means that a lower price increases the purchasing power of the buyers money income allowing the buyer to purchase more of the product than before. o The substitution effect - which means that at a lower price buyers are motivated to substitute what is now a less expensive product for similar products that are now relatively more expensive.  The law of demand is graphically represented as a downward sloping curve.  An increase in demand is expressed graphically as a shift of the demand curve to the right while a decrease in demand is expressed as a shift of the demand curve to the left.  An increase or decrease in quantity demanded is represented as a movement alone a given demand curve and is caused by an increase or decrease of the price of the product.  A demand curve will shift as a result of a change in one of the determinants of demand which are:  Buyer tastes – a change in tastes can cause buyers to demand more, or less of a product  Number of buyers – an increase in the number of buyers will result in an increase in the demand for a product  Income – a. If income increases and the demand for a good increases, that good is called a normal good. b. If income increases and the demand for a good decreases, that good is called an inferior good  Expectations – expectations of buyers will impact demand. If the buyer expects the price of the product to increase, this would likely cause a decrease in demand for the product.  Prices of related goods – a. If the price of a good increases, we would expect the demand for the substitute good to increase. b. If the price of a good increases, we would expect the demand for its complement to decrease.  Price of non-related goods – a price change for one good would have no impact on the demand for the other good. • Make sure that you ar ...

1. Here is an example of a question along with a possible answer.
Please note the format. Please do not write your answers in the
standard
block paragraph format!
This is by no means the perfect answer. It could certainly be
better. But, I
wanted to give you a sense of what I am looking for in an
answer.
Question:
Please thoroughly and completely explain the law of demand.
Answer:
o Demand is a schedule or curve that shows the various amounts
of a
product that consumers are willing and able to purchase at each

2. of a series
of possible prices during a specified period of time.
relationship between price and
quantity demanded. This is supported by the following three
concepts:
successive units of a
particular product will yield less and less marginal utility.
o Marginal utility – the change in utility that results from a one-
unit change
in the consumption of a good or service.
o The income effect - which means that a lower price increases
the
purchasing power of the buyers money income allowing the
buyer to
purchase more of the product than before.
o The substitution effect - which means that at a lower price
buyers are
motivated to substitute what is now a less expensive product for
similar
products that are now relatively more expensive.
sloping curve.

3. the demand curve to
the right while a decrease in demand is expressed as a shift of
the demand curve
to the left.
ed
as a movement alone
a given demand curve and is caused by an increase or decrease
of the price of the
product.
the determinants of
demand which are:
– a change in tastes can cause buyers to demand
more, or less of
a product
– an increase in the number of buyers will
result in an
increase in the demand for a product
–
a. If income increases and the demand for a good increases, that
good is
called a normal good.
b. If income increases and the demand for a good decreases, that
good is
called an inferior good

4. – expectations of buyers will impact demand. If
the buyer
expects the price of the product to increase, this would likely
cause a decrease
in demand for the product.
–
a. If the price of a good increases, we would expect the demand
for the
substitute good to increase.
b. If the price of a good increases, we would expect the demand
for its
complement to decrease.
-related goods – a price change for one good
would have no
impact on the demand for the other good.
• Make sure that you are using an open outline like format in
the construction of your answers.
Please provide lots of detail.
1. To a great extent, Economics is about connecting the dots
(finding relationships between seemingly unrelated things).
Our behavior impacts our ecosystem and all of the ecosystem
services. Those impacted ecosystem services in turn have
impacts on the people and economies of the global north and
global south.
a. Pick 5 ecosystem services from the list in slide 13.

5. b. Explain how each of your 5 ecosystem services is supposed to
work.
c. Thoroughly explain the human behavior that has disrupted
each of those services.
d. Explain how those disruptions to each ecosystem service
impacts the two different parts of the world (the global north
and global south).
e. For each of the 5 ecosystem services, thoroughly explain 3
things that we should start doing right now to repair or at least
stop the damage to the 5 ecosystem services you selected. Be
sure you provide and explain your 3 recommendations for
EACH of the 5 ecosystem services you selected!
2. Planet Earth is our only home for the time being. As global
populations grow and our resources dwindle, we should worry
more about the issues of SCARCITY AND CHOICE
i. There are 17 Rare Earth Elements. Pick any 5 of them, and for
EACH of the 5, explain in detail why they are so critical to us.
Include in your answer:
a. what it used for;
b. why are those things so critical?
c. Where in the world the resource is located?
d. And approximately how much is left. e. For EACH of the 5,
please explain 3 things we need to start doing today to avoid
running out of that resource. It is very important that you
provide thorough and complete explanations here.
b. The theory of rational behavior says that we humans act in
our own self-interest. Given our actual behavior and the
decisions we have made and are continuing to make relative to
the planet,
i. Explain how over-pumping aquifers around the world is in
our best interest. Gotta think about this!
ii. What does over-pumping of aquifers really mean?
iii. Explain how the continued over-pumping of aquifers in
America, China, and India, could impact our ability to survive
on the planet. This will require that you find out what these 3
nations have in common that has something to do with aquifers.

6. Need some detail here.
iv. Explain in detail 3 things we can do to stop the over-
pumping problem. Focus on the top uses of water in the world.
c. Utility Concepts:
i. Explain the 3 concepts: Utility, Marginal Utility, and
Diminishing Marginal Utility. ii. Explain how EACH of those 3
concepts could relate to a yes or no decision to implement the
Keystone XL Pipeline project.
d. The Theory of Consumer Behavior:
i. Explain EACH of the key assumptions of the Theory of
Consumer Behavior and what the theory tells us. Read the slide
and listen to the audio.
ii. Does the theory of consumer behavior reflect reality? If yes,
then why. If no, the why not.
e. Marginal analysis is a decision-making tool.
i. Please define Marginal Cost ii. Please define Marginal
Benefit,
iii. Explain these 3 cases in terms of what you should do
regarding an activity.
1. MB>MC 2. MC>MB 3. MC=MB
iv. Explain 3 examples of MC related to the Keystone XL
Pipeline question.
v. Explain 3 examples of MB related to the Keystone XL
Pipeline question.
3. The Production Possibilities Model is one of the first
Economic Models students learn about.
a. Please explain what the model teaches us.
b. Please explain each of the 4 assumptions of the model.
c. Please explain Productive Efficiency and how it relates to the
ppc.
d. Please explain Allocative Efficiency.
e. Please provide a thorough explanation of the 2-step process
for finding the point of allocative efficiency on the PPC.
f. On the topic of Economic growth: need to see some detail
here.
i. What does it mean?

7. ii. How can it be graphically represented?
iii. What are the prerequisites to Economic growth?
iv. Why is Economic growth important to you and your
country?
v. Please provide thorough explanation of 3 factors that would
tend to limit economic growth. Be sure you explain how those
factors would actually limit economic growth.
g. The Presentville – Futureville case:
1. Explain what motivated each group to make the decisions
they made. 2. Explain the impact of those decisions on the
future of each group. 3. Which group is most like America, and
why? 4. What does this story teach you?
h. Law of increasing opportunity cost:
1. Explain it.
2. What does it teach us?
3. How could it be explained graphically?
i. Explain how you could use the Production Possibility Model
to represent the US Economy during 2008 – 2010.
4. Every country has its own unique type of Economic System.
Ours is called Capitalism.
a. Please list and explain 5 “good” things Capitalism has
produced for us over the years. Make sure you provide thorough
explanations of why you believe these are “good” things. This
is harder than it looks! Think carefully and be objective.
Nothing is 100% good or bad, so you will need to be very
thorough in your explanations.
b. Please list and explain 5 “bad” things Capitalism has
produced for us over the years. Make sure you provide thorough
explanations of why you believe these are “bad” things.
c. Please explain in detail what would happen to our capitalist
system when it is confronted with limited global resources and
limited global markets.
5. The Circular Flow Model with Government is another
important model for students to understand.
a. Please explain what the model shows us.
b. List and explain the characteristics of each component – be

8. very thorough and provide plenty of detail! You
must have at least 4 characteristics for each component.
c. Thoroughly explain how each component of the model
interacts with the other components – be very thorough – this
requires lots of detail! Explain how all of the sectors and
markets interact with each other. You can do this as part of
your answer to part ( b) if you like but understand that this will
require significant detail!
6. Demand, Supply, Market Equilibrium a. Demand:
i. Please Thoroughly and completely define demand.
ii. Please state the law of demand.
iii. List and thoroughly explain the 3 factors that support the
law of demand. Be sure you explain how each actually supports
the law of demand. 1. Don’t just copy from the slides, explain
what they actually mean and how they support the law of
demand. iv. List and explain the determinants of demand and
how each can cause an increase in demand and a decrease in
demand. 1. List and explain each of the 5 determinants and how
they impact demand.
v. Thoroughly and completely explain the differences between a
change in demand and a change in quantity demanded along
with the causes of those changes, and how each change is
graphically represented.
b. Supply.
i. Define supply.
ii. State the law of supply.
iii. List and explain the determinants of supply and how each
can cause an increase in supply and a decrease in supply.
iv. Thoroughly and completely explain the differences between
a change in supply and a change in quantity supplied, the causes
of those changes, and how each is graphically represented.
c. Market equilibrium.
i. Please thoroughly and completely explain what market
clearing equilibrium means. 1. Don’t just copy stuff, explain
what this really means. Please be thorough.
ii. Thoroughly and in detail, explain what happens when a price

9. is above the equilibrium price, and why those things happen!!!
Detail!
iii. Thoroughly and in detail, explain what happens when a price
is below the equilibrium price, and why those things happen!!!
Detail!
iv. Thoroughly and completely explain the two government
intervention cases, price floors and price ceilings and give
examples of each.
7. In the discussion of the Market System we talked about the
characteristics of the Market system and 4 Fundamental
Questions that every economic system must answer.
a. List and thoroughly and completely explain those 4
fundamental questions and how they are answered. All the
necessary information is provided in the slides and the audio
lectures. Be sure you provide thorough and complete
explanations throughout.
i. What will be produced?
ii. How will the goods and services be produced?
1. Why must firms try to employ the most economically
efficient production techniques?
2. For each of the following issues, please explain in detail,
why they are important to a firm and how a firm might address
each one (need to see the detail here):
a. Optimal plant location
b. Resource Prices
c. Resource Productivity d. Transportation Costs
b. Who will get the goods and services?
c. How will the system accommodate change?
d. Characteristics of the Market system.
i. Select any 5 of the characteristics of the Market system that
we covered, and explain each of them. Be thorough!
ii. Explain how each characteristic you selected impacts the 1%
versus the 99%.
8. Public goods vs. Private goods.
a. Private goods:
i. Please explain private goods.

10. ii. Please explain their characteristics.
iii. Please give 2 examples of private goods, including why
those examples best fit your definition.
b. Public goods:
i. Please explain public goods.
ii. Please explain their characteristics.
iii. Please give 2 examples of public goods, including why
those examples best fit your definition.
c. Free rider problem: i. Please thoroughly and completely
explain the free rider problem.
ii. Please give two examples of the free rider problem, and
explain why they are good examples.
d. quasi-public goods:
i. Please thoroughly and completely explain the presence of
quasi-public goods.
ii. Please provide 3 examples of quasi-public goods and explain
why they are good examples.
iii. Explain how quasi-public goods are used by the 1% versus
the 99%.
9. Depreciation and Appreciation of currency.
a. Please thoroughly and completely explain how the US dollar
might depreciate relative to another currency, and how that
would impact U.S. GDP.
b. Please thoroughly and completely explain how the US dollar
might appreciate relative to another currency, and how that
would impact U.S. GDP. 10. Market Failure.
a. State the definition of a market failure,
b. List and explain the 4 causes of market failure included in the
slides, including how they actually lead to over or under
allocation of resources (market failure). Don’t miss this part!
Must be very specific.
c. State the definition of spillovers costs
d. Give two examples of a spillover cost situation and explain
why your examples are correct.
e. Explain in detail, the economic effects of spillover costs.

11. Provide details starting with the firm avoiding costs (how and
why that happens) and conclude by explaining the nature of the
market failure and what it really means.
f. Explain in detail, how spillover costs are corrected and how
those two approaches would actually work to solve the problem.
Be very detailed.
g. State the definition of spillover benefits.
h. Give two examples of a spillover benefit situation and
explain why your examples are correct. Be specific.
i. Explain in detail, the economic effects of spillover benefits.
Explain why the market demand curve understates true demand
and what happens next leading to the market failure. Explain
the nature of the market failure.
j. Thoroughly and completely explain how spillover benefits are
corrected and the economic implications of the corrections.
Explain the two approaches used to solve the spillover benefit
problem and how they work to solve the problem.
11. Throughout the age’s countries have implemented
impediments to trade.
a. What is a tariff?
b. Why would America impose tariffs against another nation?
c. Why would the U.S. impose steep tariffs on Chinese solar
panels prior to 2016? i. Explain how this would work to
accomplish the U.S. objective.
d. Given the current trade war with China and other nations,
please explain:
i. Which industries are being hurt by higher tariffs against
foreign nations and how are they being hurt?
ii. Which industries are being helped by higher tariffs against
foreign nations and how are they being helped?
iii. Explain how and why the American customers of those
industries are being impacted. Please provide thorough
explanations.
e. What is an import quota?
f. Why would America implement import quotas?

12. g. Identify 3 cases where the U.S. has imposed import quotas on
another country and explain why each were implemented. Be
thorough.
h. What are non-tariff barriers?
i. List and explain 3 examples of non-tariff barriers imposed by
the U.S., why they were implemented, and their impact on the
U.S. and other countries.
j. All trade barriers are suddenly eliminated. Explain what
would happen to employment, national income, and GDP in
America, and why those things would happen.