Economy
What do we call the market clearing price? How do buyers and sellers determine the market clearing price? Draw a graph showing the market clearing price.
Draw a circular flow diagram that includes the product market, resource (factor) market, households, and firms. Explain how goods and services circulate between the four parts
Explain the difference between a product market and a factor market.
Explain how the law of demand, the law of supply, and prices work to determine production and distribution in a market economy.
Define the law of supply. Define the law of demand
What is the difference between supply and quantity supplied? What is the difference between demand and quantity demanded?
What do we call the market clearing price? How do buyers and sellers determine the market clearing price? Draw a graph showing the market clearing price.
What are the five determinants (shifters) of demand?What are the five determinants (shifters) of supply?
Draw a graph with a supply curve. Show and increase and decrease of supply. Draw a graph with a demand curve. Show an increase and decrease of demand.
What is a price ceiling? Why would the government use it? What will a price ceiling always create? Draw a graph illustrating a price ceiling.