Economics – Final Exam
Review Sheet
Basic Questions of Economics
THREE OF THEM
Types of Business:
Sole Proprietorship
Partnership
General
Limited
Corporation
Economic Systems:
Command
Market
Free Enterprise
Traditional
Business Cycle:
Peak
Trough
Recession
Expansion
Four Factors of Production
Land
Labor
Capital
Entrepreneurship
GDP
Scarcity
Opportunity Cost
Constant Opportunity Cost
Diminishing Marginal Utility
PPF Curve
Definition
Draw One
Label and be able to explain pts:
ON/BELOW/ABOVE the curve
Circular Flow of Economics
Chart
Supply
Law of Supply
Quantity Supplied
Shift in Supply
Cause & Effect
Demand
Law of Demand
Elasticity of Demand
Quantity Demanded
Shift in Demand
Cause & Effect
Equilibrium Point
Price Ceilings / Floors
Surplus/Shortage
Real vs. Nominal
GNP
CPI / PPI (Market Basket)
Inflation
Cost-Push
Demand-Pull
Creeping / Galloping / Hyper
The Fed
Open Market Ops / RR / DR
Fiscal vs. Monetary Policy
Unemployment
Cyclical
Seasonal
Frictional
Structural
Keynesian Economics
Supply-Side Economics
Monetarism
Budgets
Deficits
Crowding (gov.’t reduces private
spending by spending gov.’t $)
Banking
Fractional Reserves
Taxes
Proportional
Progressive (“Ability to Pay”)
Regressive