What are the three questions (problems) that every economic system needs to address? What is the role of an economic system? Why does scarcity exist? What is the economic decision rule? Identify the different types of costs and benefits including marginal costs, marginal benefits, sunk costs, and opportunity costs. Understand the role of understanding the value of opportunity cost in making decisions. What is the invisible hand theory? What is the difference between macroeconomics and microeconomics? What is a normative statement? What is a positive statement? Who is in charge of making economic decisions in the U.S. economy? What is the shape of the production possibilities frontier? What does the shape of the slope of a production possibility frontier imply? What is a point on the production possibility frontier called? What is a point inside the production possibility frontier called? What is a point outside or beyond the production possibility frontier called? What is the difference between comparative advantage and absolute advantage? What are market externalities? How do externalities impact cost/benefit analysis? What does laissez faire mean? What is Adam Smith's belief about trade? What is outsourcing? What is the law of one price? In the circular flow diagram what is the goods market? In the circular flow diagram what is the factor market? What role does businesses, households, and the government play in the circular flow diagram? What is a market economy? What type