Answer each of the questions below in short-answer format. Write your responses in complete sentences. Your answers to each question should include 2-3 paragraph.( 125-250)

1) How are scarcity, choice, and opportunity cost related?

2) What are the effects of an increase in the minimum wage in the U.S. economy? Who would be most affected?

3) Why is elasticity of demand greater for goods that are a large share of a consumer's budget?

4) What is the difference between accounting profits and economic profits? Which of the two concepts is more appropriate for explaining decisions made by entrepreneurs? Explain.

5) Differentiate between the short run and the long run? What is the appropriate time dimension of the long run?