1. What are the four factors of production?
2. What is any point along the PPC considered? Inside?Outside?
3. Which side (S or D) utilizes the factors of production to make goods and services?Which side provides them?
4. What does the Law of Demand state?
5. What could break this law (so that P goes up and Qd goes up)? Hint: what would have to happen to the price of the other (substitute) goods?
6. What is held constant as you move along the demand curve?
7. How is the market demand curve derived (mathematically)?
8. What does the Law of Supply state?
9. How would you show a supply increase due to a factor (factors) not related to price?S decrease?D increase?D decrease?
10. What happens when a price ceiling is placed above equilibrium?Below equilibrium?