Type in complete sentences!  Each answer must have a minimum of 4 sentences.  Answer all 10 questions.  Type clearly and concisely.  You will be graded based on quality of writing, accuracy of responses, grammar, level of analysis, and in comparison to the quality of the others in your class.

1.)  Describe the basic functions of a market-based economy.  Briefly describe how the circular flow model works and how that relates to a market-based economy.

2.)  Prior to the American Revoluyion, what kind of economic system did North Carolina have?  Describe how that is different from capitalism as portrayed by Adam Smith.

3.)  Who is primarily responsible for tax policies in the United States?  Briefly describe four key components of fiscal policy?

4.)  Who is primarily responsible for monetary policy in the United States?  Briefly describe four key components of monetary policy.

5.)  How is the unemployment rate measured?  Who is responsible for calculating the official rate?

6.)  Describe and give an example of the following:  frictional, structural, sectoral, seasonal, and cyclical unemployment.

7.)    Briefly describe and give examples of underemployment, displaced workers, and discouraged workers.

8.)   In the 2000’s a trend of fewer men participating in the workforce began.  Provide three factors that contributed to this unique employment issue.

9.)  What is a basket of goods?  How does the U.S government calculate inflation?

10.)  Provide three reasons as to why the current way of measuring inflation may not be accurate.