1. Define economics using the following terms: allocation, distribution, goods, resources, production, and services.

(2 points)

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2. What is scarcity, and how does it affect supply and demand in the game of economics?

(5 points)

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3. List the main differences between a free-market system, a command economy, and a mixed economy.

(2 points)

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4. What type of economic system does the United States have? Explain.

(5 points)

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5. 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.

(5 points)

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6. 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.

(2 points)

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7. What is technology? Name the two forms that technological advancement can take.

(2 points)

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8. Give an example of a technology that led to greater productivity and explain how it did so.