Jawaban Chapter 1 dan 2

CHAPTER 1 & 2
ANSWERS
MATCHING QUESTION
1. E. positive economics
2. H. normative economics
3. I. opportunity cost
4. B. efficiency
5. D. marginal cost
6. J. Production Possibility Frontier
7. A. Laissez-Faire economy
8. K. comparative advantage
9. C. absolute advantage
10. G. command economy

TRUE FALSE
1. T
2. F, opportunity cost is different with the sunk cost. Because opportunity cost is the best alternatives forgone of making one decision and giving up another decision, while sunk cost is the cost that is gone after making a decision, and it doesn’t counted on the next economic decision.
3. T
4. F, the statement above is normative economics
5. F, economics problem is determined by three basic questions of what, how, and for whom related to the production and distribution of scarce resources and allocation.
6. T
7. F, economic growth is the increasing in the total output where the society produces more goods and services within given resources. It also means the increasing of productivity.
8. F, there’s nothing such best economic system, because every system has its own strength and weakness.
9. T
10. T

MULTIPLE CHOICE
1. B. opportunity cost
2. D. what, how, for whom
3. C. work in Insurance Company
4. A. when price increases, quantity demanded will decrease
5. D. Ockham’s razor
6. D. comparative advantage
7. D. investment
8. C. the economic decision is planned
9. C. having more bachelor and master degree among people
10. A. Scarcity

ESSAY
1. Economics is the study of how societies use the scarce resources to produce goods and services and distribute them among different people.
2. Opportunity cost is the best alternatives forgone of making one decision and giving up another decision.
Sunk cost is the cost that had been made and cannot be recovery and shouldn’t affect next economic decision.
Marginal cost is an additional cost of producing one unit of output and concern also for the economic decision
3. The four main reasons why we study economics are :
-Learn the basic thoughts : related to the opportunity cost, marginal cost, sunk cost. it deals of how society makes a decision
- Understanding the society : because the economic decision in the past will affect the life of the society nowadays, so we study economics to concern the long-live society.
- Understanding global issues : because economic had become a main issue all over the world. The policy, locally or internationally, will lead to the overall economic performance in one country. And because economic often causes the big impact for the world welfare and stability, it’s important to understand the global issues.
- to be the speaker of knowledge : when we want to participate about the country’s performance, it’s important to analyze the policy by knowing the basic understanding of economics.
4. Positive economics : The economics method that describe of what happening is and how it is happening. The approaching of economics that doesn’t judge and just see how the people and operation system behave.
Normative economics : The economics method that analyze the result of economic behavior and evaluate the policy about how good and how bad. It what should be happen rather than what happens.
5. Ceteris Paribus means other thing held constant. The assumption of ceteris paribus is needed to simplify the reality and to focus of the relationship we are concerning of. It’s the part of abstraction process when there’s a complicated model and hard to be discussed. Because in the social life, many things had their own effect to something, and to know the relationship of only one thing to another thing, we need to make the model more simply.
6. Scarcity is when the resources are limited relative to the human needs and wants. While choice is the action that human should do when they face the fact of scarcity.
as related to the economic problem, people should make a choice how to produce efficiently in the given scarce resources. The 3 basic question of what, how and for whom are also answering the problem of scarcity and choice.
7. Comparative advantage : The idea which stated that the specialization and the free-trade will give a benefit for each trader’s participant, even when there’s an inefficient producer.
Absolute advantage : The idea which stated that a producer still gets a same result in producing goods or services when that producer is able to use the lower resources.
8. Laissez-Faire is the France’s phrase which means : let them do.
It is the economic system that has no government intervention and work based on market-economy-system. It concerns in the efficiency and regard that the government intervention will only bring the inefficiency, so it runs its economic based on the behavior of capital’s holders.
9. Production Possibility Frontier is the graph that shows the all combination of goods and services produced when all resources are used efficiently.
In the graph shows the combination of weapons and butter that nation faces. The nation best production is lied above the point A andC.
while the B point, the nation is still leaving some resources.
In point A, the nation take more weapons that butter, while in point C, the nation take more butter than weapons, but it gives the same best alternatives.
The point B implies that the nation hasn’t used its best resources in producing products. It means the economy hasn’t attained the efficient economy.

weapons







butter





10. Indonesia’s economic system is actually a mixed-economy which adopts the market-system when there’s a freedom for market to operate its business and run economic activities, but there’s still an intervention from government. Where the main and important resources are led by the nation and the private firms can only run a business of usual products (not main important resources). Furthermore, the government is also regulating several economic performance indicators which reflects in the fiscal or monetary policy.