1. What is the difference between a price floor and price ceiling?
According to the laws of demand and supply and how market equilibrium, efficiency, and equity are reached, do attempts to repeal those laws and market results with price floors and price ceilings justify legislative bodies to implement price controls?
2. What is the difference between market failure and government failure?
Is it difficult for markets to allocate scarce resources efficiently on its own?
What are some of the problems the political system faces in overseeing markets?
3. How does the number of substitutes affect the price elasticity of demand for a product or resource?
What does a higher number of substitutes mean for the slope of the demand curve?
What does a smaller number of substitutes mean for the slope of the demand curve?
4. What is the difference between an explicit cost and implicit cost?
What is the difference between normal profit and economic profit?
How does this all relate to the entrepreneur’s “opportunity costs?”