1. What were the main agricultural developments over the last two centuries?
2. Inflation has been a persistent problem for most of the 20th century. What were some of its consequences?
3. Today America has the world's largest economy as well as a very high standard of living. What factors in our economic history helped make this possible?
4. List the main ways the "new economy" (since the early 1990s) differs from the "old economy."
5. Under what circumstances can we operate outside our production possibilities curve?
6. Would it be harder for a nation to attain full employment or full production? Explain.
7. The circular flow model is a simplified version of our economy. Describe how this model works.
8. What are the three basic economic questions that all economies must answer? Describe the differences in the ways capitalism and socialism answer these questions.
9. What was Adam Smith's invisible hand, and what economic function did it serve?
10. How far has China evolved into a market economy? To what degree has this evolution contributed to China's economic growth?
11. If market price is above equilibrium price, explain what happens and why. If market price is below equilibrium price, explain what happens and why.
12. Where is a price ceiling with respect to equilibrium price? What will be the relative size of quantity demanded and quantity supplied?
13. How is equilibrium price affected by changes in (a) demand and (b) supply?
14. What is equilibrium? Why is it advantageous for the market price to be at equilibrium?
15. How would the abolition of rent control reduce the housing shortage in some cities?