Give two examples of recent decisions that you made in which you, at least, implicitly, weighed marginal cost and marginal benefit.

Evaluate and explain the following statements:

• The market system is a profit-and-loss system.
• Competition is the disciplinarian of the market system.

What do economists mean when they say: "price floors" and "price ceilings" stifle the rationing function of prices and distort resource allocation?

Explain the two causes of market failures. What specific curve (the Supply or Demand) can be shifted when either positive or negative externalities have existed? What specific direction the Supply of Demand curve can be shifted when either the Positive or Negative externalities are presented?