Q. 1. Give an example of how the Principle of Prospect Cost applies to your life. Think of a recent decision you made. It could be a decision as simple as whether to eat out or cook your own dinner or it could be a decision to quit your work also goes back to school. Illustrate what alternatives did you consider? How did you arrive at your final decision? Did you implicitly weigh marginal cost also marginal benefit? How does the concept of prospect cost apply to production possibilities curve (PPC) analysis? How can we utilize PPC analysis to examine illustrate what we do?

2. Think of a business industry you recently visited (such as Wall Mart, Home Depot, Red Lobster, Barnes & Noble, McDonald's, etc.). Illustrate what motivated the producers of all the person products in the store to create them also offer them for trade? How did the producers decide on the best combinations of resources to utilize? Who made those resources available also why? How does the marketplace Conclude who will get the goods also service? Who decides whether these particular products should continue to be produced also offered for trade? How do these decisions differ between capitalist also socialist systems?