Mr. Vogt Advanced Economics Chapter 1 ?’s Section 1: 1. What is scarcity as how does it affect your life? Be specific! 2. What are the three basic economic questions that must be answered? 3. Name and explain the four factors of production. 4. Identify how each factor of production can be affected by scarcity. Give a specific example in each category. 5. What is GDP? Section 2: 6. Do you feel Americans depend more on economic goods or economic services? Support your answer with examples. 7. What is utility? Does a product’s utility vary? 8. What is the difference between the product market and the factor market? 9. What is the circular flow of economics? Where do you fit in? 10. What causes economic growth? 11. Name and explain the factors that have led to increase productivity. Section 3: 12. What is opportunity cost? Give an example in your life? 13. What is the production possibilities frontier? 14. What is an economic model? Give two examples. 15. What are economic model based on? 16. What is a free enterprise economy? Do we live in this type of economy? Explain.