Current Event:

1.) With an economic perspective write a brief summary of the current event article

2.) Write your opinion and application of this article to your life

The Washington Post

"U.S., China Agree to Cooperate on Korea Crisis" 4-13-13

1. Summarize the relationship between short-run and long-run costs in 50 words or less.

2. Read the assigned article, entitled "How to Ensure Long-Term Business Success: Five Steps You Can't Afford to Skip!".

ASSIGNMENT

1. Explain why accounting profit is higher than economic profit. Be specific.

2. Explain why the average fixed cost curve is steep at lower quantities.

3. Explain the relationship between productivity curves and cost curves.

4. What is derived demand?

5. Explain the least cost rule?

6. Explain the Profit-Maximizing rule.

7. Define economic rent.

8. Go to the Energy Information Agency Historical Data Overview page and notice the Total Energy Flow 2010 diagram, scroll down, look on the right side, and click on the graph. The diagram gives energy consumption and usage for the U.S. for 2010; you will need to do some calculations to answer the questions.

Is the United States totally dependent on oil imports?

What fraction of its oil consumption does it have to import?

Is it strange that even though the country is a net importer of petroleum, it exports some petroleum too?

What about the overall energy situation?

What percentage of its overall energy consumption can it fulfill with domestically produced energy?

What fraction of domestic production comes from renewable energy sources?

Is this higher or lower than you were expecting, and why?