Econ EOCT
Study Guide
Fundamental Concepts
What are Productive Resources or Factors of Production?
List the three types of factors of production.
a.
ex.
b.
ex.
c.
ex.
Scarcity
Opportunity Cost
Trade Offs
Marginal Benefits
Marginal Costs
Productive Possibility Curve
Specialization
Voluntary Exchange
Utilization
Economic Systems > List the Four econ systems and give a brief description
of each.
a.
b.
c.
d.
Economic Questions > List the three economic questions.
a.
b.
c.
Private Property Rights
Profit motive
Consumer Sovereignty
Competition
What is the role of Government Regulations?
List 3 examples of Gov’t regulations.
1.
2.
3.
List 2 examples of Gov’t deregulations.
1.
2.
What are the effects of regulations and deregulations on the producers and
consumers?
Regulations effects
Deregulations effects
Producers
Consumers
What are the 6 Economic Goals most economic systems try to address? Give
a brief description of each.
1.
2.
3.
4.
5.
6.
Role of the Gov’t in a Market Economy
1. What are Public Goods & Services? Give some examples of each.
2. How does the Gov’t redistribute income in the US?
3. How does the Gov’t protect Private Property Rights in the US?
4. How does the Gov’t resolve market failures?
Define Productivity as the relationship of inputs to outputs.
What is Capital Investment?
What three areas do firms usually apply capital investment to?
1.
2.
3.
When firms apply capital investment to these areas, what is the effect on the
US?
Microeconomics Concepts
Draw and label the Circular Flow Model.
What is the role of Money in the economy?
What is the Law of Demand?
What is the Law of Supply?
What is the role of Price in the Free Market?
Explain how prices serve as incentives in a market economy.
What is the Equilibrium price?
Graph the following information and determine the equilibrium price.
Price of a slice of pizza
$.50
$1.00
$1.50
$2.00
$2.50
$3.00
Quantity Demanded
300
250
200
150
100
50
What are Price Ceilings?
What do price ceilings lead to?
What are Price Floors?
What do price floors lead to?
What factors lead to changes in Supply?
a.
b.
c.
d.
e.
f.
g.
What factors lead to changes in Demand?
a.
b.
c.
d.
What is Elasticity of Supply?
What is Elasticity of Demand?
.
Quantity Supplied
100
150
200
250
300
350
List and describe the four types of market structures and their
characteristics.
Types of Market
Structures
Description
Characteristics
Perfect Competition
Monopoly
Monopolistic
Competition
Oligopoly
List and describe the three types of Business Structures. Give two
advantages and disadvantages of each type.
Type of
Business
Structure
Sole
proprietorship
Partnership
Corporation
Description
Advantages
Disadvantages
1.
1.
2.
2.
1.
1.
2.
2.
1.
1.
2.
2.
What is the role of Profits for an Entrepreneur?
Macroeconomics
How is economic activity measured?
GDP =
Vocab:
Gross Domestic Product (GDP)
Economic Growth
Unemployment
Consumer Price Index (CPI)
Inflation
Stagflation
Aggregate Supply
Aggregate Demand
Identify the 4 types of unemployment.
Types of Unemployment
Frictional
Seasonal
Structural
Cyclical
Describe
Label the 4 phases of a business cycle.
c
a
a=
b=
c=
d=
d
b
What is the difference between a recession and a depression?
What is the difference between national debt and government deficits?
What is role and function of the Federal Reserve?
What is Monetary Policy?
What is Fiscal Policy?
How are fiscal and monetary policies similar? How do they differ?(434)
Fiscal and Monetary Policy Tools (434)
Fiscal Policy Tools
Monetary Policy Tools
Expansionary Tools
1.
1.
2.
2.
3.
Contractionary Tools
1.
1.
2.
2.
3.
International Economics
What is absolute advantage in regards to trade?
What is comparative advantage in regards to trade?
Why does most production of goods and services use a comparative
advantage?
What is the difference between a balance of trade and a balance of payments?
Define the following trade barriers.
Tariffs (ex. custom duty)
Quotas
Embargos
Standards
Subsidies
Identify the cost/benefits of trade barriers over time.
Costs >
Benefits >
What are trading blocks?
Describe the following Examples of trading blocks.
EU =
NAFTA=
ASEAN=
Free trade Pros
Free trade Cons
Define exchange rates
What is the impact of exchange rates on purchasing power?
Personal Finance Economics
Decision making model
Alternatives
Choice 1
Choice 2
Benefits
Decision
Opportunity Cost
Benefits Forgone
Choice 2
Benefits of choice 2
Choice 1
Benefits of choice 1
Financial Institutions and Services (510-511)
Types
Description
Commercial banks
Services
Savings & Loan
Savings Banks
Credit Unions
Saving & Investing (506-509)
Options
Savings
Income generated Growth potential
Risk level
Bonds
Common stock
Preferred stock
Mutual funds
Taxes
Type of tax
Progressive
Regressive
proportional
Describe
example
What factors affect credit worthiness?
a.
b.
c.
d.
What are the types of interest on credit accounts and give a description.
a.
b.
What is the purpose of insurance?
List 3 types of insurance.
a.
b.
c.
What are the costs and benefits of insurance?
What is the importance of investment in education, training, and skill
development in the workforce?