- What are the four main categories of resources? Explain each of them.
- (a) Explain what happens in the simple circular flow diagram? (b) What effect do price controls have on the market system?
- (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?
- Does economic growth eliminate scarcity? Why?
Sample Solution
