1.You are the manager of a firm that sells a "commodity" in a market that resembles perfect competition, and your cost function is C(Q)=2Q+3Q2C(Q)=2Q+3Q2. Unfortunately, due to production lags, you must make your output decision prior to knowing for certain the price that will prevail in the market. You believe that there is a 70% chance the market price will be $200 and a 30% chance it will be a $600.

2. What relationship did the Scientific Revolution have with economics?

3. What is an example of how non-rational human behavior can change an economic outcome?

4. If GDP is $400 billion and the country's population is 100 million, does it follow that each individual in the country has $40,000 worth of goods and services? Explain.

5. In an economy, suppose GDP is $8 trillion, taxes are $1.5 trillion, private saving is $0.5 trillion, and public saving is $0.2 trillion. Assuming this economy is closed, calculate consumption, government purchases, national saving, and investment.

6. Discuss why an economy's income must equal its expenditure.

7. Explain how net exports affect the U.S. economy.

8. Explain the components of Gross Domestic Product with example and which component is the largest.

9. Can total expenditures ever be greater than the money supply? Explain your answer.

10. Identify the four largest categories of expenditures of the federal government