Work Period – Day 2

  • Begin work on your Executive Summary Learning Reflection
  • Please work on Assignment 2 with your group
  • Complete the following:

Read Pages 120-128

Make notes and be sure you can answer:

Check Your Understanding

Page 123 Questions 1-3

Page  128 Questions 1-3

In Class Assignment

  • Begin work on your Executive Summary Learning Reflection
  • Please work on Assignment 2 with your group
  • Complete the following:

Read Pages 120-128

Make notes and be sure you can answer:

Check Your Understanding

Page 123 Questions 1-3

Page  128 Questions 1-3

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Utility Theory and Government Interventions

Questions you should be able to answer:

What are utils?

How does total utility differ from marginal utility?

Can you illustrate total and marginal utility using graphs?

What is the paradox of value?

Applications of Supply and Demand -Class Discussion:

If markets can find equilibrium in supply and demand and allocate resources efficiently- why and how do governments intervene extensively in markets? Should governments intervene in markets?

Tools Governments Use:

Ceiling Prices

Floor Prices

Subsidies and Quotas