1. Describe the circular flow model of the free-market system.
2. How do consumers use cost-benefit analysis? Why do consumers make different decisions using this process?
3. Name two different market structures. Describe how and why they each have a different competitive situation.
4. What is the Law of Supply and Demand? Explain how increases and decreases in supply and demand affect prices.
5. What is the business cycle? What causes changes from one phase of the business cycle to another?