Name: ____________________________________ Pd ___ Date ___ / ___ / ___ Mr. Henry
Economics
Unit 1 Test –Economics – 45 Points
Chapters 1-3 (Pages 2-79)
Part I, II, and III. Vocabulary Review (Word Bank) – 16 points
3 Sections (Chapters 1, 2, and 3)
Chapter 1
scarcity
economics
factors of production
gross domestic product
consumer good
paradox of value
human capital
specialization
economic interdependence
trade-off
opportunity cost
economic model
cost-benefit analysis
free enterprise economy
capitalism
mixed economy
socialism
communism
minimum wage
fixed income
Social Security
inflation
voluntary exchange
profit motive
consumer sovereignty
interest
double taxation
merger
income statement
net income
depreciation
cash flow
horizontal merger
vertical merger
conglomerate
multinational
nonprofit organization
public utility
Chapter 2
traditional economy
command economy
market economy
market
Chapter 3 (We did not have a Vocab Quiz on these words)
sole proprietorship
unlimited liability
inventory
limited life
partnership
general partnership
limited partnership
corporation
charter
stock
stockholders
dividend
common stock
preferred stock
bond
principal
Part IV. Critical Thinking (Completion) – 6 points
Review Scarcity, Production Possibilities Frontier, Sole Proprietor, Types of Economies
Part V. Matching – 7 points
Part VI. Subjective – 6 points
Look over your study guide notes for the subjective questions. You will have these on your test!
Part VII. Essay: You will have two of these essays – 10 points
List & describe each of the 4 factors of production
What is TINSTAAFL, where did TINSTAAFL originate, and cite two examples of TINSTAAFL
Describe what Adam Smith meant by the Paradox of Value and cite examples
Describe 3 advantages and 2 disadvantages to the sole proprietorship
Describe each of the 5 reasons for a merger
Define scarcity in your own words and how society determines how to use a scarce resource