1. Imagine that the market for oranges is in equilibrium at a price of $1.50 per pound. Provide one demand-related and one supply-related reason why the equilibrium price could rise to $2.00 per pound.
2. What will happen to the market for oranges if both producers and consumers believe that prices will rise in the near future?
3. Explain the terms Trade-Offs and Opportunity Costs. How can they be applied when deciding to attend college?
4. A mixed economic system incorporates aspects of both centralized command and control and a decentralized pricing mechanism. Does the United States have a mixed economic system? What's the reasoning?
5. Explain the terms productive and allocative efficiency. What is an example of each?