K Economics Final Exam Review
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Major purpose of any
economic system
Scarcity
Factors of production
Land
Labor
Capital
Entrepreneurship
U.S. Economic System- what
and why?
Capitalism
Communism
Socialism
Mixed Economy
PPF
Capital and Consumer Goods
Economic System Continuum
Macroeconomics
Microeconomics
Karl Marx
John Maynard Keynes
Adam Smith
Calculating trade-off
Calculating opportunity cost
Laissez-faire
Unemployment ideal
percentage
Circular flow
Factor Market
Product Market
Monetary Flow
Physical Flow
Law of Demand
Law of Supply
Shortage
Surplus
Inelastic vs. elastic demand
Inelastic vs. elastic supply
What will cause demand to
change?
What will cause supply to
change?
What will cause a change in
quantity demanded?
What will cause a change in
quantity supplied?
Supplementary goods
Complimentary goods
Equilibrium market
Price Floor and examples
Price ceiling and examples
What determines who gets
scarce goods?
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Components of GDP
Positive result of budget
deficit?
Business Cycle
Contraction
Expansion
Trough/Peak
Seasonal Unemployment
Structural Unemployment
Cyclical Unemployment
Frictional Unemployment
Largest GDP Component?
Included/Excluded from
GDP?
Net exports- Negative when?
Real GDP vs. Nominal GDP
Recession
Full unemployment
Cost-push inflation
Demand-pull inflation
Natural rate of unemployment
Who benefits from inflation?
1970 major economic event
and why?
Given unemployment and
inflation numbers, be able to
tell what type of fiscal policy
should be adopted.
Purchasing power
Determining unemployment
rate
Representative money
Fiat money
Commodity money
Current Fed Chairman
What is necessary for a fiat
money system to work?
How are money supply and
price level related?
FOMC
Given unemployment and
inflation numbers, you should
be able to tell what type of
monetary policy to adopt
Most commonly used
monetary tool
Who controls the Fed?
FDIC
Codes on money- meaning?
Expansionary vs.
Contractionary monetary
policy
Goal of fiscal/monetary policy
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Government usually does
what when there is a budget
deficit?
Largest source of government
income?
Largest and smallest areas of
federal spending?
AD/AS graph- reading and
analyzing
Last budget surplus was
when?
Keynsian view of fiscal policy
Expansionary vs.
Contractionary fiscal policy
Automatic vs. Discretionary
fiscal policy
Majority of Federal debt is
owed to who?
Balanced budget amendment
Progressive tax- examples
Regressive tax- examples
Why trade?
Dollar deprecation- who
benefits?
Balance of trade
Free trade vs. Protectionism
NAFTA
Factors that determine wages
Absolute advantage- calculate
Comparative advantagecalculate
Sole Proprietorship,
Partnership, Corporation
Rank these three most to least.
Fortune 500
Horizontal Merger
Vertical Merger
Conglomerate
Pure Competition
Oligopoly
Monopolistic Competition
Geographic Monopoly
Government Monopoly
The Dow
Non-Price Differentiation
Blue Chip Companies
Negative credit info
Maximum credit card liability
Renters/Homeowners
insurance
How much should you save?
Fixed costs in a budget