| Unit 1 Review |
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| This page last modified on 16 February, 2005 |
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| Review Questions– 1. What is the basic economizing problem? How would one characterize scarcity? 2. What is the difference between positive and normative economics? 3. What is the difference between micro and macroeconomics? 4. What are the characteristics of an economic model? 5. Distinguish between costs and opportunity costs. 6. Is the production possibilities frontier an example of an economic model? What kind of information does a PPF attempt to convey? When a PPF is concave to the origin what conditions exist in that economy? Why? 7. How do each of the following systems differ: capitalism, market socialism, socialism, communism? 8. What is a market? 9. What is the difference between supply and quantity supplied? 10. What is the difference between demand and quantity demanded? 11. Define and describe the influences on demand. Try to provide a ‘real-world' example for each. 12. Define and describe the influences on supply. Try to provide a ‘real-world' example for each. |