Economics
Final Exam Review Guide
Unit 1 – Introduction to Economics
 Scarcity
 Factors of Production
 Self-interest
 Microeconomics versus Macroeconomics
 Opportunity Cost
 Production Possibilities Frontier
 Absolute versus Comparative Advantage
 Positive and Negative Externalities
 Private Property
 Market Participants - Circular Flow Model
Unit 2 – The Market Economy (Demand, Supply, Market Forces & Structure)
 Law of Demand
 Demand Curve
 Determinants of Demand (Shifts/Changes)
 Law of Supply
 Determinants of Supply (Shifts/Changes)
 Production Costs – Fixed, Variable, Total, and Marginal
 Market Equilibrium – Price and Quantity
 Shortages and Surpluses
 Price Floors and Ceilings
 Competition
 Monopolies
 Oligopolies
 Economic Regulations
Unit 3 – Market Institutions
 Three Types of Business Organization
 Entrepreneurs
 Demand and Supply of Resources
 Wage Determinations
 Labor Unions
 Interest Rates
 Stocks, Bonds, Securities
Unit 4 – The National Economy
 Gross Domestic Product (GDP)
 Business Cycles
 Aggregate Demand and Supply
 Production Possibilities Frontier (PPF)
GPS Economics Final Exam Review Guide 1
June 2007
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Productivity
Industrial Market countries versus Developing countries
Unemployment
Inflation
Unit 5 – Public Policy and the National Economy
 Taxation
 Fiscal Policy
 Federal Deficits and Debt
 Monetary Policy
 Money – Origins and Purpose
 Federal Reserve System
 Federal Open Market Committee (FOMC) & Open Market Operations
 How Banks Work
 Reserve Requirements
Unit 6 – The International Economy
 Specialization
 Trade Restrictions – Tariffs & Quotas
 Balance of Trade
 Imports and Exports – Surpluses and Shortages
Unit 7 – Personal Financial Literacy
 Types of Loans
 Credit Scores and History – 3 C’s of Credit
 Establishing Good Credit
 Various Types of Investments
GPS Economics Final Exam Review Guide 2
June 2007