1. How do you define economics?
2. How do you expect the study of economics to affect your life?
3. What is economic equality?
4. Give an example of economic equality.
5. Define opportunity cost.
6. What is the true cost (opportunity cost) of your attendance of Arkansas Tech (list all of the things included in the true cost)?
7. How does productivity affect a country's standard of living?
8. What is the relationship between money supply and inflation?
9. Explain marginal benefit.
10. What is the "invisible hand?"
11. Explain how incentives affect people's actions.
12. What is a production possibilities frontier?
13. Refer to the diagram below.
a. What does point A represent?
b. What does point B represent?
c. What does point C represent?
14. What might cause the shift from PPF1 to PPF2 in the diagram above?
15. How does macroeconomics differ from microeconomics?
16. How do positive statements differ from normative statements?
17. Provide an example of a positive statement.
18. Refer to the circular flow diagram below. Each question is worth 2 points.
a. Which arrow represents the flow of goods and services?
b. Which arrow represents the spending of households?
c. Which arrow represents the flow of land, labor, and capital?
d. Which arrow represents the flow of income payments?
e. Referring to the same figure, if Jane buys a pair of shoes at a shoe store, which of the arrows does this transaction involve?
19. Why are property right laws important?
20. Why do most economists think that increasing the minimum wage will increase unemployment?