Check Your Understanding

1. Question

   Provide an example of a resource from each of the four categories of resources.

2. Question

   What type of resource is each of the following?

   1. time spent flipping hamburgers at a restaurant

   2. a bulldozer

   3. a river

3. Question

   You make $45,000 per year at your current job with Whiz Kids Consultants. You are considering a job offer from Brainiacs, Inc., which would pay you $50,000 per year. Is each of the following elements an opportunity cost of accepting the new job at Brainiac, Inc.? Answer yes or no, and explain your answer.

   1. the increased time spent commuting to your new job

   2. the $45,000 salary from your old job

   3. the more spacious office at your new job

4. Question

   Identify each of the following statements as positive or normative, and explain your answer.

   1. Society should take measures to prevent people from engaging in dangerous personal behavior.

   2. People who engage in dangerous personal behavior impose higher costs on society through higher medical costs.