1.1. Define a want and a need, and give an example of each. Then, explain how the relationship between wants and needs affects the way people spend money. (4 points)

2.. Identify and describe an economy's three factors of production that contribute to scarcity. Briefly explain how these three factors all contribute to scarcity in a similar way. (4 points

3.Identify and explain the two different kinds of capital. Give at least one example of each. Then, describe at least one factor in a society that significantly affects each kind of capital. (4 points)

4. Every economic decision involves trade-offs, which come with both costs and benefits. The benefits lost when making an economic decision are known as the opportunity cost of that decision.

Imagine this scenario. Ivan is an expert coder, and he's designing his own video game. He has a very clear vision for what he wants. But it's taking a long time to complete. He toils day and night in his cramped, messy apartment. He really wants a separate workspace, and he has the budget to rent a small office. But he decides instead to use that money to hire a novice coder to help him finish the project.

First, what trade-offs did Ivan have to make when he decided to hire help? Second, what was the opportunity cost? (4 points)

5. Briefly describe the role of businesses and governments in a mixed economy. Then, give at least one strength and one weakness of a mixed economic system. (4 points)

6. The free enterprise system in the United States is defined by four key characteristics:

• Individual freedom
• Limited role of government
• Competition
• Profit motive

Write a short essay describing the U.S. free enterprise system in which you:

1. Describe each of the four characteristics listed.
2. Explain the three roles that the government has in this system, while providing an example of each.
3. Respond to the following prompt: Which of the four characteristics do you think is most important to the success of the U.S. economy, and why? And, which of the three roles of government do you think is the most powerful, and why?

(20 points)

Answer rating: 100% (QA)

1 A want is something desired for personal satisfaction while a need is essential for survival An example of a want is a luxury car while food represe... View the full answer