Homework #1

1. Development is often used interchangeably with growth. How are they similar or different concepts? Be sure to define both.

2. Why is the concept of equity important in community economic development?

3. Describe your paradigm of community economic development. How does your answer relate to the reasons you are taking this class.

4. What is the goal of the consumer? What factors prevent the consumer from receiving an infinite level from their goal?

5. What is the mathematical equation that represents the equilibrium in a two-good consumer model?

6. How can your answer in problem #5 be expressed with marginal utility?

7. What is the intuition behind problem #6?

8. What is the goal of the producer?

9. What is the mathematical equation that represents the equilibrium quantity needed to maximize profit?

10. Illustrate the answer to problem #9 with a graph.

11. What is the intuition behind the answer to problem #9?

12. What rule should a company follow when deciding whether to hire another worker?

13. Explain the intuition behind the answer to problem #12.

14. What rule should a company follow when deciding the fix of capital and labor in the production process?

15. What is the intuition behind the answer to problem #14?