CIA 4U1
EXAM REVIEW
ECONOMIC THINKERS
Adam Smith
Karl Marx
John Kenneth Galbraith
John Maynard Keynes
Milton Friedman
UNIT 1: APPLYING THEORIES OF
ECONOMIC CHOICE
Economics
Basic Economic Problem
Scarcity
Needs & Wants
Goods & Services
Productive Resources
Task of the Economic System
Opportunity Cost
Production Possibility Curves
Positive Economics
Normative Economics
Basic Economic Questions
Economic Systems
Spectrum of Economics
Characteristics of Economic Systems
Effectiveness & Efficiency
UNIT 2: ECONOMIC INSITITUTIONS
Circular Flow (Basic)
Demand
Utility
Diminishing Marginal Utility
Supply
Elasticity
Market Equilibrium
Price Ceilings
Price Floors
Market Structures
Deregulation
Privatization
Role of Government
Taxation
Expenditures
UNIT 3: ECONOMIC MEASURES OF
PERFORMANCE
GDP (Real, Nominal)
Final Goods
GNP
Income/Expenditure Approach
Measures of Income and Spending
Employment
Labour Force
Participation Rate
Unemployment
Okun's Law
Types of Unemployment
Inflation
Consumer Price Index
GDP Deflator
Causes of Income Inequality
Incidence of Poverty
Welfare State
Programs Aimed at the Causes of Poverty
Program Aimed at Symptoms of Poverty
Economic Well Being
UNIT 2: ECONOMICS & POLITICS
Business Cycle
Leakages
Injections
Circular Flow (Advanced)
Aggregate Demand
Aggregate Supply
Macro Equilibriums (UE, FE, AFE)
Fiscal Policy - Expansionary,
Contractionary, Limitations
Deficits, Surplus and Balanced Budgets
Debt
Problems with Debt
Money – Functions, Demand, Supply
Bank of Canada
Regulation of the Money Supply
Monetary Policy - Expansionary,
Contractionary, Limitations
Inflation
Keynsian School
Monetarism
Supply Side Economics
Laffer Curve
UNIT 5: INTERNATIONAL TRADE
Economic Rights and Responsibilities of
Citizens
Comparative Advantage
Absolute Advantage
Specialization
Balance of Payments
WTO, GATT, NAFTA, EU, OPEC
Exchange Rates
CIA 4U1
Economics Exam Essay Questions
June 2007
1.
Should the government continue to implement rent controls?
2.
“Canada’s national debt is now about $425 billion. Like any debt, it should never
have
come about. Every year, Canada’s deficits keep adding to the growing debt.
If this keeps up, the
country will be bankrupt before you know it.” Agree or Disagree
3.
“Power generation and distribution must be kept in the hands of government”
Agree or Disagree
4.
“Raising the minimum wage to $10/hr will be an effective tool in combating
Agree or Disagree
Note:
Your answer must include a discussion of Macro and Micro economics.
poverty.