Economics CP: Final Exam Review

Economics CP: Final Exam Review
1. Economics
2. Microeconomics versus Macroeconomics
3. Scarcity
4. Opportunity Cost
5. Incentives
6. Goods versus Services
7. Four Factors of Production (list and define)
8. Circular Flow Model (draw and label)
9. Market
10. Three Economic Questions
11. Market versus Command Economies
12. Mixed Economy
13. Standard of Living
1. PPF (what does it stand for?)
2. Graph and label PPF (think links and smiles)
Label- An efficient point (A)
An inefficient point (B)
An unattainable point (C)
A Trade-off
A Free Lunch
3. Absolute Advantage
4. Comparative Advantage
Supply and Demand
1. Law of Demand versus Law of Supply
2. List things that change demand
3. List things that change supply
4. Compliment versus Substitute
5. Change in Demand versus Change in Quantity Demanded
6. Equilibrium Price versus Equilibrium Quantity (may show it graphically)
7. Elastic versus Inelastic Demand
8. Price Floor (graph, define, and effect of)
9. Price Floor (graph, define, and effect of)
10. Black Markets
Economic Indicators +
1. GDP (what stand for?, define, formula)
2. Business Cycle (graph and label)
3. Recession
4. Unemployment (frictional, structural, cyclical, seasonal)
5. Labor Force
6. CPI (stand for?, define)
7. Externalities (positive versus negative)
Business and Labor
1. Sole Proprietorship
2. Partnership
3. Corporation
4. Dividends
5. Stockholders
6. Double Taxation
7. Unlimited Liability
8. Labor Union
9. Strike versus Lockout
10. Collective Bargaining
11. Right to Work Laws
Market Structures
1. List the Four Market Structures and Major Characteristics of Each
(or just attach your chart from class)
2. Fixed versus Variable Costs/Resources
3. Law of Diminishing Marginal Returns/Benefits
4. Marginal Analysis
Fiscal Policy
1. Fiscal Policy
2. Supply-Side Economics
3. Demand-side Economics
4. Laissez-Faire Economics
5. Adam Smith
6. Deficit Versus Debt
7. Surplus
8. Balanced Budget
9. Revenue versus Expenditure
10. Progressive versus Flat (proportional ) Tax
11. Greatest Federal Discretionary Spending
12. Greatest Federal Mandatory Spending
13. Greatest Source of Federal Revenue
14. Greatest State Expenditure
Monetary Policy
1. Monetary Policy
2. Money
3. Inflation
4. Federal Reserve System (basic structure)
5. Fed Chairman
6. List the 3 Fed Tools to Reduce the Money Supply