Q. • Illustrate what is the mechanism by which the "invisible hand" pushes markets to equilibrium?

• Explain the two main causes of marketplace failure also give an example of every.

• Utilize a production possibilities frontier to describe efficiency. (This question can be answered either with or without utilize of a graph, depending on whether you have a graphing program on your Compute r. It is possible to describe the various points on the PPF without a graph.)

• Illustrate what is the difference between a positive also a normative statement? Give an example of every.

• Explicates how absolute advantage differs from comparative advantage.

• Illustrate what are the factors which conclude the quantity of a good which buyers demand?

• Define the equilibrium of a market. Describe the forces which move a marketplace toward its equilibrium.

• List also explains the four determinants of price elasticity of demand.