10th Grade Economics Final Exam Review
Know the following Terms:
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Free Rider
Private Good
Public Good
Contract
Total Revenue
Incentive
Entrepreneur
Household
Profit
Ethics
True or False: A private good is owned by the government
True or False: In Voluntary Exchange one consumer takes advantage of
another
True or False: In order to understand Profit, you simply must add up the
total revenue of any business venture
True or False: Participants in a free enterprise system do not have to
worry about ethics
Law of Demand
Law of diminishing marginal utility
Quantity supplied
Unit Elastic Demand Technology
Normal Good
Substitutes
Quota
Supply
Complements
According to the Law of Demand when Price increases:
Demand requires the _____________________________ and _____________________________
of buyers to purchase a good or service
Bait and Switch advertising:
______________ _______________ is the number of units of a good produced and
offered for sale at a specific price
Per-Unit Cost is:
If the United States limits the number of cars from Japan that can be
imported, this is known as a ____________________________
Surplus
Shortage
Equilibrium
Equilibrium Price
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Equilibrium Quantity
Inventory
Rationing Device
Price
Brute Force
Cambridge
It is possible for scarcity to exist when the quantity supplied of a good equals
the quantity demanded of a good
True or False: When prices fall there is a surplus
True or False: Prices rise when there is a shortage
True or False: Price rations supply and demand
True or False: Alfred Marshall advocated strict capitalism and was not
concerned with the poor
True or False: If concert tickets sell out, and there are still people in line to
buy tickets, that means that equilibrium has been met, because all the tickets
are sold
True or False: Using price as a rationing device discriminates against the
poor
True or False: House prices tend to be higher in densely populated cities
than in sparsely populated cities
Fixed Cost
Board of Directors
Corporation
Marginal Revenue
Partnership
Stockholder
Total Cost
Franchise
Bond
Dividend
True or False: In a sole proprietorship there is limited liability
True or False: In a sole proprietorship profit is taxed only once
True or False: Stockholders are people who buy bonds from a company
True or False: A bond is an IOU
True or False: According to the Law of Diminishing Returns profit always
goes up when you hire more employees
Equilibrium Wage Rate
Right – to – Work Law
Minimum wage
Unemployment Rate
Closed Shop
Union Shop
A retired person
A person on strike
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Wage Rate
Global Competition
Possible Essay Questions:
1. How does scarcity affect choice and cost?
2. The U.S. is what type of economy? Why is it considered that type of
economy?
3. Explain why sellers are not always better off selling their goods at higher
prices
4. If a product can no longer be produced (More Picasso paintings), how does
that affect the Supply Curve?
5. List at least three ways, other than price, that goods could be rationed.
6. Pens and pencils sell for about the same in every city in the country, but
houses do not. Why?
7. Calculate Marginal Cost
8. Calculate Average Total Cost
9. If the non-institutional adult civilian population is 150 million and there are
100 million people employed and 5 million unemployed what does the
civilian labor force equal?
10. Given your answer to question 1, calculate the unemployment rate
11. Given your answer to question 1, calculate the employment rate