1. What is scarcity and why does it exist?

2. Explain what happens to the Supply Curve when Economic Profits are above normal. Below normal.

3. If there are no externalities or market power and all markets are in equilibrium, what conclusions can we draw from this in economic theory?

4.Describe the relationship between Allocative and Productive Efficiency

6.Distinguish between the positive and negative externalities

7. Explain how surpluses/shortages might become permanent.

8. Explain moral hazard as used as example of imperfect information in the market

9.How does asymmetric information affects the market

10.Discuss ways the government can reduce unemployment problem in the country