1. Discuss Absolute Advantage and Comparative Advantage, and provide at least two examples of each. Do you think that this concept is still as relevant today as it was when Adam Smith was writing about it 240 years ago? Why/Why not?
2. Identify a recent purchase in which the price of the product was an important consideration in the decision-making process related to purchasing the product. What other factors affected your decision? How important was your income as a factor? How important was the price of other goods as a factor?
3. Consider how supply and demand affects us as buyers and sellers?
4.What is the relationship between price elasticity of demand and total revenue? How does price elasticity of demand affect a firm's pricing decisions? How does the availability of substitutes affect the price elasticity of demand? Provide a real-world example that illustrates your points.
5. Give an example of supply and demand.
6. Consider how supply and demand effects the impact of taxes.