1.Why are the factors that shift the demand for a product different from the factors that shift the demand for labor? Why are the factors that shift the supply of a product different from those that shift the supply of labor?

2.Why does productivity growth in high-income economies not slow down as it runs into diminishing returns from additional investments in physical capital and human capital? Does this show one area where the theory of diminishing returns fails to apply? Why or why not?

3.Why do economists use index numbers to measure the price level rather than dollar value of goods?

4.Which is more problematic to the economy? Stagflation or inflation. Prove your answer.

5.Is it preferable for central banks to primarily target inflation or unemployment? Why?

6.Do you agree or disagree with this statement: "It is in the best interest of our economy for Congress and the President to run a balanced budget each year." Explain your answer.

7.How does competition, whether domestic or foreign, harm businesses?