ECON 2105 Principles of Macroeconomics SP 2023
Student Name _______________________ (2 points)
Unit 1 Writing Assignment
Purpose: To access your knowledge of economic systems, decision-makers and improve
your analytical/reasoning skills by discussing the circular flow diagram and the production
possibility frontier.
Instruction: Write your name above and respond to all the questions below.
1. Using your knowledge of a circular flow diagram, explain what households
sell in the market for factors of production resource market (5 points)
2. Using your knowledge of a circular flow diagram, explain what firms sell in
the market for goods and services product market (5 points)
3. Briefly explain three types of economic systems. State one advantage and one
disadvantage of each economic system. What economic system does the US
have? (15 points)
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4. Using the above graph explain briefly why societyàproduction of goods and
services at point A is unattainable (5 points)
5.
Using the above graph, describe and/or explain briefly what happens when a
society is producing goods and services at point B (5 points)
6. What are the efficient points of production on the above PPF? (5 points)
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7. List the decision-makers in an economy. How is international trade related to
point A on the PPF above? (8 points)
_____________
*Note: To complete the above questions, you must complete reading Chapters 1 & 2 of
the textbook and the PowerPoint on Economic Decision Makers
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