Answer the following questions.
Question 1) Name and describe nine significant characteristics of American market system.
Question 2) Define the Four Fundamental Questions faced by any economic system.
Question 3) Explain how the market system answers each of these four fundamental questions.
Question 4) State normal profits and economic profits and describe the difference between them.
Question 5) Explain the relationship between profits and expanding industries; losses and declining industries.
Question 6) Describe how consumer influences the “What goods and services will be produced?” question.
Question 7) Describe how a market system achieves economic efficiency.
Question 8) Describe the role of income distribution on the “Who will get the goods and services?” question.
Question 9) Explain the guiding function of prices.
Question 10) Explain how market system promotes technological improvements and capital accumulation.
Question 11) Describe the role of competition and “invisible hand” in promoting economic efficiency.