Economics

1. What example of a price ceiling does the text give? Explain. 2. Why do few people benefit from price ceilings? 3. How do rent control laws affect price equilibrium? 4. What two examples of price floors does the text give? Explain? 5. What will happen to suppliers in a market if there is a surplus of the good they sell, but no supplier can afford to lower prices? 6. List three reasons why a price-based system works more efficiently than central planning. 7. What do you think Adam Smith would think of rationing? Explain. 8. How do prices act as a “language” in the free market?. 9. What alternative is there to participating in a market controlled by government? 10. What’s another term for externalities? How does it affect price and supply?

1. find a computer (in your classroom, the library or a computer lab); 2. log on to http://mhs-cjuhsd-ca.schoolloop.com;    3. the student DOES NOT FILL OUT THE BOXES (yet); 4. the student clicks on “register now”; another page will open; the student clicks on “student registration” and follows directions; 5. the “student id number” for School Loop is always the “long” six-digit ID number; 6. select an EASY TO REMEMBER password

Vocabulary: pg. 151, 156, 166 & 172 1. What is a market structure dominated by one large seller? 2. Why must perfectly competitive markets always deal in commodities? 3. Why does government allow natural monopolies? 4. What kinds of government monopolies exist? 5. What is an oligopoly? 6. What is a cartel? 7. Why are economists skeptical about most claims of predatory pricing? 8. Why did the government pass antitrust laws? 9. What are some examples of industries that have been deregulated since the 70s and 80s? 10. What have been the benefits of deregulation?

1. How does the government intervene to protect public health, safety and well-being? 2. What are the main programs through which the government redistributes income? 3. What are the differences between the public and private sectors? 4. What are some examples of “negative externalities”? 5. What are some examples of “positive externalities”? 6. Why are street lights an example of a public good? 7. How does calculating GDP help the government track the business cycle? 8. What are the phases of the business cycle? 9. What’s the difference between micro and macroeconomics? 10. What is the government’s role in encouraging innovation?

Define Terms on pgs. 23, 28, 34 & 40 1. What are the three key economic questions? 2. What are the five main economic goals? 3. How do a traditional economy, a market economy, a centrally planned economy and a mixed economy differ? 4. How does a capitalist system allocate scarce resources? 5. Study the Circular Flow Model of a Market Economy on pg. 30. What is exchanged in the factor market? 6. What is exchanged in the product market? 7. What did Adam Smith mean by “The Invisible Hand” of the marketplace? 8. In what kind of economic system does the government own key industries? 9. How do socialism and communism differ? 10. Study the Circular Flow Model of a Mixed Economy on pg. 42. In what ways does the government participate in the marketplace?