1. 1. Definitions

1. 1. Microeconomics

1. 2. Marginal Unit

1. 3. Economics

1. 4. Supplement

1. 5. Luxury Good

1. 6. Capital

1. 7. Opportunity Cost

1. 8. Production Frontier

1. 9. Diminishing Returns

1. 10. Natural Resource

2. 2. State the pros and cons of the U.S. price system (8 points).

3. 3. State the traits of the U.S. capitalistic economy (8 points).

4. 4. List the determinants of supply and demand (10 points)

SUPPLY DEMAND

5. DRAW THE CIRCULAR FLOW OF GOODS AND SERVICES. SHOW AND LABEL ALL MARKETS, SEGMENTS, FLOWS, AND LINKAGES IN THE ECONOMY (20 POINTS)

6.

a.) Draw a demand curve and then a supply curve determining the initial equilibrium price and quantity.

b.) Show and describe what happens to price and quantity when demand increases equal to a supply increase. (10 points).

7. 7. See the PDF attached, from the graph describe employment conditions and society preferences for:
8. 

A.

B.

C.

D.

8. 8. Explain whether economics ties better to the concept of ?social Man? or ?economic man? (10 points).

9. 9. From a good, neutral, and bad view point, tie returns, scale, and cost together (6 points).

10. Bonus (8 points). Describe what changes occur in supply and demand that make either a change in demand/supply or a change in quantity demanded/supplied.

7. Problem Necessities Production Frontier C tuxuries