ECN 320 HW2

Directions: Please provide detailed and elaborate descriptions for each of the following terms and concepts.  Your responses should be a minimum of 1 to 2 paragraphs and should include examples from the reading assignments or personal experience, if possible.

1.      Competition

2.      Price

3.      Capitalism

4.      Circular flow model.

5.      Market failure

6.      Socialism

7.      Communism

8.      Demand

9.      Supply

10.    Equilibrium price

PART II: REFLECTION PAPER

Describe the importance of price mechanism, competition, and efficiency in the capitalist economy.  Please provide real-world examples (this can be from the media or your own experiences).