Question:
1. How do calculate a marginal cost or marginal benefit if number are given?
2. Why do marginal costs tend to rise, and marginal benefit tend to fall
3. What kind of costs do people in business face? must they in terms os U.S dollar?
4. How to market help allocates scares resources, and what problem might they not be able to solve?
5. What is the role of the prices in allocating scarce resources? what is an alternative to using the price?
6. What factor shifts the supply and demand curves,and what happen to P and Quantity after these shifts?
7. What kind of choice does a PPF represent, and how does illustrates a number of economic principles?
8. What factor go into production process, and how does scarcity force individual to make choice?
9. Why might markets fails? can and should government intervene if the market fails?
10. Can you explain specific market failures (asymmetric information and externalities)?