Study Guide for first economics midterm exam. The test will be essay in format and
as a result you will need to be sure to
Study all returned work
Study all returned quizzes for chapters 1, 2, 4+5, 6, 7, 8,9, 10, 11, 12+14, 16+17
Review Chapters 1-12, 14,16, 17 in your textbook.
Be certain to pay close attention to the following concepts:
I. Introduction to Economics and Economic Systems: Major economic concepts:
Scarcity, opportunity costs, decision making, incentives, market economic system,
command economic system, traditional economic system, economic institutions.
II. Markets, Supply, and Demand:
Major economic concepts: Markets and prices, supply and demand, controls on
prices.
III. Types of business organizations. Proprietorship, Partnership, Corporations,
Cooperatives, and Not-For-Profit organizations.
IV. Competition, Market Structures, Monopolies, Oligopoly, Government Monopoly,
Various Types of Market Failures, The Role of Government in the economy.
V. Macroeconomic Concepts: Labor and Wages, Trade Unions, Taxation, Federal
Taxes, State and Local Taxes Current issues with taxation, Government spending,
State and Local government spending, Debt, Deficits and National Debt, Transfer
Payments. Money and banking, Housing bubble, Monetary standards, The Federal
Reserve, Gold Standard, Different Types of Banking institutions and how they make
money, Investments, GDP, Inflation, Unemployment, Economic Stability
Be sure to study hard and understand that you can bring a ½ page (standard 8 and
1/2” x 11” size) cheat sheet with anything you would like to write down on the test.
You may bring this study guide if your prefer it.