Presumably, this was during a unit on areodynamics, and the idea was to demonstrate an understanding of areodynamics, and not to show that you can throw balls farther than you can throw planes.
If the teacher had asked for the object that would go farthest, instead of specifically asking for a paper plane, then you would have a point.
2. It wasn't during a unit on aerodynamics, and in any case, "the motion of air, particularly when it interacts with a moving object" is quite relevant to wads of paper, meteorites, missiles, arrows, helicopters, and various other objects that are not airplanes. It might have been a good opportunity to explore why something like my wad of paper would go farther than most planes, as well as the relative real world advantages of different things.
I immediately realized that the costs worked in such a way that it was infeasible to build anything and come out positive, so I convinced my team to not build anything while we watched other teams go into the negative, while we calculating their debts.
It worked great until the teacher caught on and adjusted the prices so that it was cost-effective to build.