Problem 1. What are the four economic resources? How is each resource defined?
Problem 2. What is the law of increasing opportunity costs? Why do opportunity costs increase?
Problem 3. What do each of the following seek if they pursue their own self-interest: consumers, resource owners, and business firms?
Problem 4. In the circular flow model, what are the two markets? What role do households play and what roles do businesses play in each market?