7) Explain Adam Smith's concept of the Invisible Hand. How does self-interest and Invisible Hand impact the economy? 8) Marx saw history as a continuing struggle among social classes; ruling classes contending with ruled classes in every era. Explain what Marx believed. Do you agree and why or why not? 9) Smith and Marx disagree about the existence of the exploitation of workers. Explain each man’s view of the existence of exploitation. With which do you agree and why? 10) What factors influence your demand for a good you use? 11) Construct a demand schedule and demand curve for a good you purchase regularly. 12) Explain the concept of equilibrium price. Use supply and demand curves to show how equilibrium price and quantity are determined. 13) What is the difference between a shift in and a movement along the demand or supply curve? Graph each situation. What causes each change?
14) What are the different market structures and what are their characteristics? What market structure traditional economists feel is better and why? 15) How do traditional economists analyze the effects of price ceilings and price floors? Illustrate with supply and demand curves. 16) Draw and explain the circular flow diagram. 17) What is the good society and how is it judged according to traditional economists? 18) Define: a) Short run b) Macroeconomics c) Microeconomics d) Utility e) Opportunity cost f) Laissez faire g) Equilibrium h) Efficiency i) Intermediate good j) Final good k) Ceteris Paribus l) Capital m) Externality n) Demand o) Supply p) Surplus Labor q) Capitalism r) Socialism s) Long run