Ch 6 Prices - Econ work. PDF

Preview

Summary

Econ work....

Description

Name_______________________________________________Date____________Per___________ Chapter Prices Lesson 1 How Prices Work Provide the definition for each bolded vocabulary word. Answer the questions in complete sentences. Biofuels

neutral

criteria

Price

Rationing 1. Explain in your own words how the terms rationing and price are related.

2. Explain why the price system is an efficient allocator of economic resources.

3. How do prices help us make decisions?

4. Are prices the best way to allocate resources?

5. How do prices connect markets in an economy?

Lesson 2 The Effects of Prices Provide the definition for each bolded vocabulary word. Answer the questions in complete sentences. economic model equilibrium price equilibrium quantity surplus shortage voluntary fluctuate 1 How is the equilibrium price of a product related to the equilibrium quantity, and how can these values be determined?

2. Describe an example of a surplus and an example of a shortage, including what may have caused them.

3. How does price affect a seller’s decision to produce a product?

4. How do changes in supply and demand affect prices?

Lesson 3 Social Goals, Prices, and Market Efficiency Provide the definition for each bolded vocabulary word. Answer the questions in complete sentences. price ceiling price floor target price nonrecourse loan stabilize arbitrarily 1 Explain how a target price for farm crops is an example of a price floor.

2. Explain why the government imposes price floors and price ceilings in certain markets.

3. What are the costs and benefits of economic policies aimed at creating equity and security?

4. Whom do price supports benefit and whom do they hurt?

5. How do markets “talk”?...