Economics Final Exam
Review
Chapters 9 – 11,13,14,16
Chapter 9
 Authority to collect income tax.
 Intergovernmental revenues
 What are they?
 What are they used for?
 Types of taxes
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FICA
Flat
Regressive
Progressive
Chapter 9
 Characteristics of Taxes
 Who do they hurt?
 Who do they benefit?
 Incidence of tax
 How is it calculated?
 Who pays the tax?
Chapter 10
 Tax Acts
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Gramm – Rudman – Hollings Bill
Budget Enforcement Act
Economy Recovery Tax Act
Balanced Budget Amendment
Chapter 10
 Types of spending
 Discretionary
 Mandatory
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Federal deficits v. Federal debts
Steps to approve the federal budget.
Government spending v GDP
Categories of Government spending.
Chapter 11
 Non – Bank Financial Institutions
 What are they?
 What services do they provide?
 What is their role in the Financial
System?
 What are Put and Call Options?
 What are they?
 What role do they play in the market?
Chapter 11
 Bonds
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What
What
What
What
What
are they?
are the different types?
is the bond rating system?
is “par value”?
is their role in the marketplace?
 What is EMH?
 Reading a stock table.
Chapter 11
 Different financial markets.
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Capital
Primary
Money
Secondary
Future
Options
Spot
Bull v Bear
Chapter 13
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Demand pull – Cost push Inflation
Stagflation
Hyperinflation
Creeping Inflation
PPI
CPI
 Base year calculations
 Reading the chart
Chapter 13
 Leading Economic Indicators
 Implicit GDP Price Deflator
 Business Cycles
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Expansion
Peak
Recession
Trough
Depression
Chapter 13
 GDP Gap
Chapter 14
 Money
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Characteristics
What is it?
Uses
Commodity money
Fiat Money
Wampum
Specie
Chapter 14
 FDIC
 What is it?
 Why was it established?
 Federal Reserve – FED
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When was it established? Why?
What is it?
What is its structure?
Fed actions in the economy?
Chapter 14
 Federal Open Market Committee –
FOMC
 What is it?
 What are its functions/purpose?
 How does its actions effect the economy?
 Reserve Requirements
 What are they?
 What are their purposes?
 Calculating
Chapter 14
 M1
 What does it comprise of?
 What is its significance?
 M2
 What does it comprise of?
 What is its significance?
Chapter 16
 Tariffs and Quotas
 Different Types
 Rationale
 Smoot – Hawley Tariff (1930)
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What is it?
What did it do?
Was it effective?
What was the outcome of this act?
Chapter 16
 GATT
 What is it?
 Was it effective?
 WTO
 What is it?
 Was it effective?
 NAFTA
 What is it?
 Was it effective?
Chapter 16
 Trade Deficits/Surpluses
 Reciprocal Trade Agreements
 Value of Currency
 Exchange rates
 Effects on Trade
 Comparative v. Absolute advantage
 What is the difference?
 How do they each effect trade?
Chapter 16
 Currency exchange rates
 Reading exchange charts
 What helps to determine the exchange
rate?