1.Draw the circular flow of economic activity, labeling all economic actors, markets, and money flows.

2.Discuss the strengths and weaknesses (i.e., problems) of using GDP data

3.Explain what is happening during each phase of the cycle with:

i. output,

ii. employment,

iii. and inflation.

4.Opportunity Costs and the Law of Increasing Costs

i. Explain what is meant by opportunity cost and the law of increasing costs?

ii. Illustrate these concepts with the use of a production possibilities frontier.

5.What is scarcity and why does it exist?

6.What is the CPI

7.Different between Unemployment and Full Employment

8.Frictional unemployment and structural unemployment

9.Explain the link between scarcity and each of the following:

i. choice,

ii. opportunity cost,

iii. the need for a rationing device,

iv. competition.

10.List and discuss the different sources of economic growth.