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1. What does money have to do with specialization and comparative advantage?
2. How are opportunity cost and scarcity related?
3. In the mid-1970s no one had a personal computer at home. Today many people do. Using demand and supply curves show the market for personal computers in the mid-1970s and today. Explain the difference between then and now.
4. What are the weaknesses and strengths of the various forms of business? Why do corporations tend to be so much larger than sole proprietorships or partnerships? Why is it so difficult to determine the objectives of the government?
5. Explain why there is an inverse relationship between quantity demanded and price. Explain why there is usually a direct relationship between quantity supplied and price?
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