1.Use the information to answer the questions below.

Marginal propensity to consume (MPC) 0.8

Marginal propensity to import (MPM) 0.2

Current equilibrium level of national income 500m

Level of national income that would give full employment 620m

Calculate the MPS for this economy illustrated in the table above.

Calculate the value of the multiplier in this open economy.

How much will the government have to inject into this economy if it wants the economy to operate at its full employment level?

2.Identify the relationship of trade , including comparative and absolute advantage , to the decisions made by domestic firms.

3.describe the importance of market forces as they determine market demand and supply versus individual demand and supply .

4.describe the role elasticity plays in determining demand and pricing decisions of the firm .

5.Identify the differences between producer surplus and consumer surplus.

6.explain the role taxationplays in supply and demand.

7.define marginal utility, total utility, and diminishing utility.

8.identify the differences between private, common, and public goods

9.describe the relationship between productivity and the different costs of production.

10.describe the various market structures, their characteristics, and the effects of each structure relationship to the market.