Answer the following questions based on what you have learned about the game of economics.
- Define economics using the following terms: allocation, distribution, goods, resources, production, and services.
- What is scarcity, and how does it affect supply and demand in the game of economics?
- List the main differences between a free-market system, a command economy, and a mixed economy.
- What type of economic system does the United States have? Explain.
- 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.
- 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.
- What is technology? Name the two forms that technological advancement can take.
(2 points)
- Give an example of a technology that led to greater productivity and explain how it did so.
| Your Score | ___ of 25 |
