1. What are the four main categories of resources? Explain each of them.
  2. (a) Explain what happens in the simple circular flow diagram? (b) What effect do price controls have on the market system?
  3. (a) Explain what can we learn from a country’s production possibilities curve? (b) How can a nation production possibilities curve shift inward? (c) Why the production possibilities cure is bowed-out in shape?
  4. Does economic growth eliminate scarcity? Why?

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