If you were to purchase a car, what benefits would you consider? What costs would you consider?

2.Describe a recent world affair that you believe to be related to economics.

3. What kinds of work do economists do?

4.Why might an electrical power generating company hire an economist?

5. Would you personally be confronted with scarcity if you could buy all the goods and services you

want?

6.What makes economics a social science?

7. Scarcity of resources is an economic reality. What are these resources and how are they broadly

classified?

8. What is the difference between real capital and financial capital?

9. What is an economic model? Why do economists find it useful to construct models?

10. What are the components (parts) of an economic model?

11. Explain the role of assumptions in economic models.

12.What is the difference between positive and normative economics?

13. Give an example of each to show that you understand the difference between endogenous and

exogenous variables.

14. What is the difference between microeconomics and macroeconomics?

15. Why should we study both microeconomics and macroeconomics?