Economics Final Exam Review
Chapters 9 – 16
Chapter 9
 Authority to collect income tax.
 Intergovernmental revenues
 What are they?
 What are they used for?
 Types of taxes
 FICA
 Flat
 Regressive
 Progressive
 Characteristics of Taxes
 Who do they hurt?
 Who do they benefit?
 Incidence of tax
 How is it calculated?
 Who pays the tax?
Chapter 10
 Types of spending
 Discretionary
 Mandatory
 Federal deficits v. Federal debts
 Steps to approve the federal budget.
 Government spending v GDP
 Categories of Government spending.
 Tax Acts
 Gramm – Rudman – Hollings
Bill
 Budget Enforcement Act
 Economy Recovery Tax Act
 Balanced Budget
Amendment
Chapter 11
 Non – Bank Financial Institutions
 What are they?
 What services do they
provide?
 What is their role in the
Financial System?
 What are Put and Call Options?
 What are they?
 What role do they play in the
market?
 Bonds
 What are they?
 What are the different types?
 What is the bond rating
system?
 What is “par value”?
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What is their role in the
marketplace?
 What is EMH?
 Reading a stock table.
 Different financial markets.
 Capital
 Primary
 Money
 Secondary
 Future
 Options
 Spot
 Bull v Bear
Chapter 13
 Demand pull – Cost push Inflation
 Stagflation
 Hyperinflation
 Creeping Inflation
 PPI
 CPI
 Base year calculations
 Reading the chart
 Leading Indicators
 Implicit GDP Price Deflator
 Business Cycles
 Expansion
 Peak
 Recession
 Trough
 Depression
 GDP Gap
Chapter 14
 Money
 Characteristics
 What is it?
 Uses
 Commodity money
 Fiat Money
 Wampum
 Specie
 FDIC
 What is it?
 Why was it established?
 Federal Reserve – FED
 When was it established?
Why?
 What is it?
 What is its structure?
 Fed actions in the economy?
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Federal Open Market
Committee – FOMC
What is it?
What are its
functions/purpose?
How do its actions effect the
economy?
Reserve Requirements
What are they?
What are their purposes?
Calculating
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What does it comprise of?
What is its significance?
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What does it comprise of?
What is its significance?
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 M1
 M2
Chapter 16
 Tariffs and Quotas
 Different Types
 Rationale
 Smoot – Hawley Tariff (1930)
 What is it?
 What did it do?
 Was it effective?
 What was the outcome of this
act?
 GATT
 What is it?
 Was it effective?
 WTO
 What is it?
 Was it effective?
 NAFTA
 What is it?
 Was it effective?
 Trade Deficits/Surpluses
 Reciprocal Trade Agreements
 Value of Currency
 Exchange rates
 Effects on Trade
 Comparative v. Absolute advantage
 What is the difference?
 How do they each effect
trade?
 Currency exchange rates
 Reading exchange charts
 What helps to determine the
exchange rate?