Explain each item briefly

l. 1. Define Economics

2. It is said that the fundamental economic problem is scarcity. Explain why

3. Differentiate macroeconomics from microeconomics. Give examples of each

4. What are the elements of economics? Give at least give examples of each

5. Differentiate capitalism from communism

6. What are the different types of goods? Enumerate and define each

7. Define economic system

8. What are the bases of production decisions in subsistence economy?

9. Give at least five examples of goods according to purpose

10. Define Socialism.

ll.

1. Using the image of circular flow diagram illustrate how the circulator flow of economy works.

lll.

Explain Briefly: The decision made by the household and the firm interact in the markets of goods and services, and in the markets for factors of production. (10 points for explanation on how the diagram works)