Answer & Explanation:1. Describe the circular
flow model of the free-market system.
(10 points)
Score
2. How do consumers
use cost-benefit analysis? Why do consumers make different decisions using this
process?
(10 points)
Score
3. Name two
different market structures. Describe how and why they each have a different
competitive situation.
(10 points)
Score
4. What is the Law
of Supply and Demand? Explain how increases and decreases in supply and demand
affect prices.
(10 points)
Score
5. What is the
business cycle? What causes changes from one phase of the business cycle to
another?
(10 points)
Score
6. Explain the
different investment options someone with a high level of risk aversion might
choose. What are the possible investment goals for this person?
(10 points)
Score
7. What are tariffs?
What are some of the harmful effects of tariffs?
(10 points)
Score
8. Give an example
of a public good and describe why it’s a public good. Should the government
provide this good? Why or why not?
(10 points)
Score
9. What is
globalization? Why does globalization benefit some countries more than others?
(10 points)
Score
10. There are a
number of organizations designed to regulate the global economy and assist
individual nations in the global economy. List and describe two such
organizations.
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