Your supervisor has been asked many questions about how the economy works and why the idea of limited resources is such a major concern in today’s economy. As a result, she has asked you to prepare a report on the topics.
Specifically, your supervisor has asked you to prepare the following:
A circular flow diagram that includes the government sector. For this part of your report, you should include a description of the roles that each participant plays in the economy and how the different sectors interact in the markets.
An illustration of the Production Possibilities model, including a summary of what the model is illustrating and the economic implications for the economy.
An explanation of why or why not trade with other countries is beneficial to an economy and how international trade fits into the circular flow diagram.
An explanation of the difference between micro and macro economics, indicating why the division is necessary.
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