What are the two subfields into which economics is divided ? Explain what each subfield studies.

In what ways is economics a science?

Why is productivity important ?

What does the “invisible hand” of the marketplace do?

Why isn't trade among countries like a game with some winners and some losers?

In what way does the patent system help society solve an externality problem?

What is an externality? Give an example of a positive externality, and give an example of a negative externality.

Draw a supply-and-demand diagram to explain the effect of a negative externality that occurs as a result of a firm’s production process..

In the year 2017, the economy produces 100 loaves of bread that sell for $\$ 2$ each. In the year 2018, the economy produces 200 loaves of bread that sell for $\$ 3$ each. Calculate nominal GDP, real GDP, and the GDP deflator for each year. (Use 2017 as the base year.) By what percentage does each of these three statistics rise from one year to the next?

Why do economists use real GDP rather than nominal GDP to gauge economic well-being?

What are the four components of GDP? Give an example of each.

Many years ago, Peggy paid $500 to put together a record collection. Today, she sold her albums at a garage sale for$100. How does this sale affect current GDP?

Which contributes more to GDP-the production of an economy car or the production of a luxury car? Why?

Which contributes more to GDP—the production of an economy car or the production of a luxury car? Why?