ECONOMICS FINAL EXAM REVIEW
NAME:
EXAM DATE:
LOCATION:
TIME:
PER:
REVIEW PACKET DUE:______________________________
NOTE: ALL STUDENTS MUST COMPLETE THIS PACKET. IT WILL BE GRADED AS A TEST. STUDENTS
ELIGIBLE FOR EXEMPTION WHO DO NOT COMPLETE THIS PACKET ON TIME WILL NOT BE EXEMPT
FROM THE FINAL.
PART 1: QUESTIONS.
1. What is economics?
2. What are the Factors of Production?
3. Name and describe the fundamental problem of economics.
4. What are the three most basic questions asked by economists?
5. Describe the CIRCULAR FLOW OF ECONOMIC ACTIVITY.
6. What is the "American Dream"?
7. What are the three main SECTORS of the U.S. economy, and what percent of the economy does
each sector represent?
8. What are the three main types of business organization?
-Which is the most common?
-Which generates the most sales?
-Which earns the greatest profits?
9. What is the Law of Supply?
10. What is the Law of Demand?
11. How does DEMAND usually affect prices?
12. How does DEMAND usually affect supply?
13. How does SUPPLY usually affect prices?
14. How does profit usually affect supply?
15. What are interest rates?
PART 2: Know the following terms or people:
Trade-off
Opportunity-cost
Paradox of value
Consumer goods v. Capital goods
Services
Capital
Human capital
Standard of living
Value
Utility
Needs v. Wants
Production v. Productivity
Specialization
Thomas Malthus
Adam Smith
John Maynard Keynes
Walter Williams
Durable v. non-durable goods
Consumer
Economic interdependence
Market
Competition
Cooperation
Property
Private ownership
Independence
Dependence
Monopoly
GDP
Per capita GDP
Elasticity of Demand
Elasticity of Supply
PART 3: ECONOMIC SYSTEMS:
HUNTER-GATHERER
FEUDAL
AGRARIAN
INDUSTRIAL
CAPITALISM
SOCIALISM
MIXED ECONOMY
COMMUNISM
FASCISM
TAX SYSTEMS, GOV. PROGRAMS:
Graduated or Progressive income tax
Flat tax
Regressive tax
Examples of other taxes we pay
Social Security
Medicare
Medicaid
Welfare, welfare reform
PART 4: OVERVIEW OF U.S. ECONOMY.
Define and/or provide U.S. figures for:
U.S. GDP
U.S. Per capita GDP
U.S. Income distribution
Unemployment rate (latest)
U.S. Budget
U.S. budget revenues
U.S. budget expenditures
U.S. TRADE
U.S. Exports in $
Main export commodities and biggest partners
U.S. Imports in $
Main import commodities and biggest partners
PART 5: BUSINESS TERMS
Economic institution
Business organization
Limited liability v. Unlimited liability
Board of Directors
Bankruptcy
Revenues
Business combinations or Mergers
Horizontal merger v. Vertical merger
Conglomerates
Multinational corporation
Nonprofit organizations
cooperative or co-op
Labor union
collective bargaining
PART 6: STOCK MARKET
Stockholder / shareholder
Stock
Common stock v. Preferred stock
Bond
Dow Jones Average
NYSE
AMEX
NASDAQ
S&P 500
Blue Chips
The Fed
Interest rates
"BUY LOW, SELL HIGH"
P/E Ratio
mutual fund
portfolio
sectors