Economics Final Review Sheet
1. What is scarcity?
2. Identify 3 Scarce and 3 Non-scarce items.
3. What is Supply? Demand? Equilibrium? Draw a simplified graph in the space below.
4. What is the law of supply? The law of demand?
5. What is a shortage? A surplus?
6. What is outsourcing? How does it affect the American economy? Describe positive and negative affects.
7. What are the four steps in the business cycle IN ORDER? What part of the business cycle can lead the economy into a
recession?
8. What is a command economy? What is another name for a command economy?
10. What makes an economy a “market economy”?
11. What is an elastic good? What is an Inelastic good? Provide three examples of EACH.
12. What are the four types of unemployment?
13. Explain the relationship between unemployment, earnings, and education.
14. What are some causes of poverty? Explain two government programs that have been created to combat poverty.
15. What does Laissez-faire mean in economics?
16. What is an opportunity cost? Provide an example.
17. What is an incentive? Provide an example.
18. What part of the business cycle is the United States currently going through? What makes you think this?
19. What are the characteristics of a market economy?
20. What are the characteristics of a centrally-planned economy?
21. What is Gross Domestic Product? What is it an indicator of?
22. What types of goods and services are not accounted for in GDP?
23. Which is a more accurate indicator of the economic well-being of a country? GDP or GDP per capita? Why?
24. What is globalization?
25. When does one country have the comparative advantage over another?
26. Describe specialization.
27. Provide 2 reasons why nations support globalization.
28. Provide 2 reasons why nations are against globalization.
29. Why do nations trade?
30. Draw and label the following items on a graph.
a. Demand Curve
b. Supply Curve
c. Equilibrium
d. Equilibrium Price
e. Equilibrium Quantity
f. Surplus
g. Shortage
h. Price Floor
i. Price Ceiling
On your final exam, you will be asked to define a number of terms.
Those terms are listed below.
1. Economics
2. Scarcity
3. Opportunity Cost
4. Incentive
5. Producer
6. Consumer
7. Surplus
8. Shortage
9. Free Enterprise
10. Command Economy
11. Transitional Economy
12. Consumer Price Index
13. Circular Flow of Economic Activity
14. Factors of Production
15. Gross Domestic Product
16. Per Capita
17. Standard of Living
18. Supply
19. Demand
20. Wants vs. Needs
21. Inelastic
22. Elastic
23. Entrepreneur
24. Outsourcing
25. Trade Surplus
26. Trade Deficit
27. Cost-Push Inflation
28. Demand-Pull Inflation
29. Quantity Theory of Money
30. Expansion
31. Peak
32. Contraction/Recession
33. Trough
34. Export
35. Import
36. Final Goods
37. Intermediate Goods
38. Economic Stimulus Package
39. Substitute Goods
40. Complimentary Goods
41. Investment
42. Price Ceiling
43. Price Floor
44. Equilibrium Price/Quantity