Questions :

Q1 : (10 Points)

Describe the circular flow model of the free-market system.

Q2 : (10 points)

How do consumers use cost-benefit analysis? Why do consumers make different decisions using this process?

Q3 : (10 points)

Name two different market structures. Describe how and why they each have a different competitive situation.

Q4 : (10 points)

What is the Law of Supply and Demand? Explain how increases and decreases in supply and demand affect prices.

Q5 : (10 points)

What is the business cycle? What causes changes from one phase of the business cycle to another?

Q6 : (10 points)

Explain the different investment options someone with a high level of risk aversion might choose. What are the possible investment goals for this person?

Q7 : (10 points)

What are tariffs? What are some of the harmful effects of tariffs?

Q8 : (10 points)

Give an example of a public good and describe why it's a public good. Should the government provide this good? Why or why not?

Q9 : (10 points)

What is globalization? Why does globalization benefit some countries more than others?

Q10 : (10 points)

There are a number of organizations designed to regulate the global economy and assist individual nations in the global economy. List and describe two such organizations.