Exam

Short Answer Questions: 

1.) What does the term "economizing problem" mean for an individual and for society? As part of your answer, include the four economic resources and the opportunity cost in your answer. ALSO...define by example (one sentence each) the following: "other things equal" assumption, productive and allocative efficiences and consumer sovereignty.


2.) What are the four assumptions in the production possibilities curve and how can unemployment be illustrated with that curve. You do not need to draw it, you need to explain it. Additionally, what does it mean when the curve shifts to the right? 

3.) Explain how the market system provides a strong incentive for technological advance and creative destruction. Within your answer, provide 3 virtues of the market system. How does the circular flow model fit into this discussion. Please be specific and use examples.

4.) Research and provide the link for...any product or service that may have been introduced in the last year that would demonstrate how a demand or supply curve could move to the right or the left. Accessing the Determinants of Supply and Demand in Chapter Three would be a great help in this question. Be clear and detailed in your review and do not forget the link!!!

Each of these answers must be thorough in order to be worth the full number of points! In other words, full paragraphs and thorough explanation would be important