Economics (McConnell) AP Edition, 19th Edition

Chapter 2: The Market System and the Circular Flow

The content of this chapter may be included on the AP* Microeconomics exam.

After reading this chapter, you should be able to:

1. Differentiate between a command system and a market system.
2. List the main characteristics of the market system.
3. Explain how the market system decides what to produce, how to produce it, and who obtains it.
4. Discuss how the market system adjusts to change and promotes progress.
5. Describe the mechanics of the circular flow model.

AP Chapter 02 Introduction (8.0K)