Introduction to Economics Review Questions: Final Exam, January 2012
ECONOMICS FINAL REVIEW
To increase your ability to do well on the final exam, the following guide is offered. This is a comprehensive exam and you will be
expected to know information from throughout the year. You should be well-versed in basic economic concepts, terms and
responsibilities. I would recommend you review notes, major worksheets, and skim the relevant chapters in the textbook.
Additionally, you have copies of all previous quizzes. You will get some class time with which to boost your study time– THIS
DOES NOT TO TAKE the place of-- your own personal studying time. I expect you to use this time wisely.
YOU MUST COMPLETE THIS REVIEW SHEET IN ORDER TO USE A NOTECARD ON THE FINAL EXAM
THIS REVIEW SHEET WILL BE YOUR LAST GRADE.
What to bring:
 You may bring one hand-drawn/written index card to the final exam. This card should contain appropriate information, two
sides only. This card will be handed in with the test.

Two #2 pencils with good erasers.

A positive attitude – this is very important to your overall success –here, there and everywhere.
Format:
Questions will be generated from a variety of styles including 100 Multiple Choice & 4 Graph Interpretation (short answer)
 Multiple choice
 Graph Interpretation
 Short Answer
1. List the four factors of production
1.
2.
3.
4.
2. Explain (in your own words) the saying: “Everything has a cost.”
3. Why is the Rolling Stones hit-song “You can’t always get what you want, such a great economic song?”
4. How is the scientific method used to study choices in economics?
5. Define Economics (in your own words).
6. Economics is often described as the dismal science, why?
7.
Explain the difference between normative and positive economics.
8. What are the five themes of geography and how are they used in understanding globalization?
a.
d.
b.
e.
c.
9. Why is studying globalization so important to this course, and our future?
Introduction to Economics Review Questions: Final Exam, January 2012
10. What are the three things we can do with our money?
a.
b.
c.
11. Why is studying personal finance at the high school level often “too late?”
12. Define the following terms:
 Cost-benefit analysis
 Efficiency
 Utilization
 Underutilization
 Microeconomics
 Macroeconomics
 Production Possibilities Curve
13.
What are the four types of economic systems?
1.
2.
3.
4.
14.
What are the three basic questions that every
economic system must answer?
a.
b.
c.
15.
You must be able to identify the following models or curves:
 Circular Flow
 Production Possibilities
 Laffer curve
 Aggregate Demand and Supply
 Supply and Demand
 Inflation
 Unemployment
 GDP
16.
What are the six factors of demand (things that shift demand)?
17.
What are the factors of supply (things that shift supply)?
18.
What is the difference between a change in quantity demanded and a change in DEMAND?
19.
What is the difference between a change in quantity supplied and a change in SUPPLY?
20.
21.
Define the four types of market structures
a. Oligopoly
b. Monopoly
c. Perfect Competition
d. Monopolistic Competition
How do antitrust laws work?
22.
What is the difference between a natural, geographic, and government monopoly?
Introduction to Economics Review Questions: Final Exam, January 2012
23.
Define the three most-common types of businesses in the United States
a. Sole Proprietorship
b. Partnership
c. Corporation
d. Franchise
24.
Which founding father was responsible for the founding of the First National Bank of the United States?
25.
Who is considered the father of modern economics?
26.
Who is considered the father of modern macroeconomics?
27.
Define the following banking terms:
 Commercial Bank
 Credit Union
 Checking Account
 Savings Account
 Savings Bond
 Interest Rate
 The Federal Reserve System
28.
29.
Define the following stock terms:
 Private Corporation
 Public Corporation
 Dow Jones Industrial Average
 Common Stock
 Preferred Stock
Define the following macroeconomic terms:
 GDP
 Inflation
 Unemployment
 Fiscal Policy
 Monetary Policy
 Recession
 Depression
 Wage-Price Spiral
 Counter Cyclical Fiscal Policy
 Leading Indicators
 Lagging Indicators
30.
Please list the four types of Unemployment
a.
b.
c.
d.
31.
International trade restrictions
 Barrier
 Embargo
 Tariff
 Export Restraint
32.
Explain the main idea of the following
international organizations
 EU
 NATO
 G20
 WTO