1. Define economics using the following terms: allocation, distribution, goods, resources, production, and services.
(2 points)
Score
2. What is scarcity, and how does it affect supply and demand in the game of economics?
(5 points)
Score
3. List the main differences between a free-market system, a command economy, and a mixed economy.
(2 points)
Score
4. What type of economic system does the United States have? Explain.
(5 points)
Score
5. Name the three factors of production and two payment types in the circular flow model. You may draw a diagram and label the necessary components if you wish.
(5 points)
Score
6. Describe how subjectivity and other factors affect a person's calculation of cost and benefit. Give an example of a cost-benefit analysis you have performed.
(2 points)
Score
7. What is technology? Name the two forms that technological advancement can take.
(2 points)
Score
Give an example of a technology that led to greater productivity and explain how it did so
. Can you elaborate on the following statement expressed by an economist: “The invisible hand of the market guides economic decisions”? How does this concept relate to the idea of self-interest in economics?
Score