Q19. Which category of scarce resources has the correct matching list? A. Land: whiteboard in a classroom, a barbershop owner, professor at a college B. Capital: mirror in a barbershop, ATM machine at a bank, a bank clerk, arable land C. Labor: professor at a college, nurse at a hospital, doctor at a hospital, mayor of a city D. Entrepreneurship: a partner in a law firm, a stockholder, software at accounting firm

1. Explain the Malthusian trap using graphs. 2. Is technological progress enough to free an economy from the Malthusian trap? Use graphs to answer the question.

Question 1 a. Draw a production possibilities curve for a hypothetical economy producing capital goods and consumer goods Tlhustrate economic growth and 1use (A) to represent an inefficient b. Explain the law of increasing opportunity cost. c. Explain why scarcity forces individuals and society to incur opportunity costs. Give three (3) specific examples.

“For most of the last 15 years, capital has been cheap. Since 2009, the after-tax cost of borrowing for some large companies has been below the rate of inflation, making their debt in real terms cost-free. All that changed in March 2022, when the world’s central banks began raising rates to curb rising inflation.”   The paragraph above is an example of: a. factors of production b. opportunity cost c. market failure d. externalities