Explain all the answers

1. What is scarcity and why does it exist?

2. Explain the link between scarcity and opportunity cost.

3. Explain how the scientific method works.

4. Are scientific theories ever proven? Explain why or why not.

5. How is the scientific method similar to democracy, evolution, and the market system? Explain each.

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

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

8. Discuss why it bows out from the origin. (Or stated differently: What causes opportunity costs to increase as more of a good is produced?)

9. Show how seven major economic concepts can be illustrated with a Production Possibilties Frontier. Explain how the PPF illustrates each concept.

10. Show how economic growth can be illustrated with a production possibilities frontier.

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

12. Discuss (and illustrate with another production possibilities frontier) how a

technological advancement in one line of production (say in growing cotton) might result in greater output in production of an unrelated good (say maize) which did not experience any technological advancement in our ability to produce it.

13. What does the socialist thinker say about the prices and exchanges in a capitalistic market system?

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

15. Point out where capitalism answers the questions of 'what,' 'how,' and 'to whom,' and explain how each question is answered at the places indicated on your drawing.