I. i) What are the most significant challenges which economists try to address?
(ii) What is the role of government in the market based economy?
(iii) Who are the major economic players and which are the most significant factors of production in California?
(iv) How can we expand the production possibilities curves? (give some exs at macro- and micro-economic levels)
II. i) Do the laws of economics still work today?
(ii) Give exs of three factors which can shift the demand curve to the right.
(iii) Should governments be involved in price controls, like setting the price floors or price ceilings? (Describe chief economic costs and benefits of such policies)
III. i) How do we measure economic growth and why do we require economic growth?
(ii) What can governments do to stimulate economic growth and create jobs? (Give some present exs)
(iii) Should government/s support the renewable energy industry and how? (base your response on California, the U.S., or any other country)
(iv) What is inflation and what impact does it have on the economy?