Essay

1.Draw the diagram of the circular flow model with a government sector (4%) and properly label it (6%). Then, explain how households, firms, and governments interact to sustain a mixed economy (10%).To earn the maximum point

multiple choice-

1 The basic difference between macroeconomics and microeconomics is:

A. microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade.

B. microeconomics concentrates on the behaviour of individual consumers while macroeconomics focuses on the behaviour of firms.

C. microeconomics concentrates on the behaviour of individual consumers and firms while macroeconomics focuses on the performance of the entire economy.

D. microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment.

3.In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:

A. all consumers.

B. buyers and sellers.

C. producers and input suppliers.

D. producers and government planning committees.