Benchmark Review
1.How do economists define scarcity?
2.What is the difference between scarcity
and shortage?
3.What are the three factors of production?
4.What is trade-off?
Benchmark Review
1.What is a production schedule?
2.What is the opportunity cost of moving from
one point to another along the frontier?
3.What does a point under the curve
demonstrate?
4.What two factors can cause a shift left or right
on the curve?
Benchmark Review
1.What is meant by “guns or butter”?
2.What is an entrepreneur?
3.What are the 3 economic questions?
4.What is an economic system?
Benchmark Review
1. Name and give the characteristics of the 4
economic systems.
2. What is specialization?
3. In a free market economy, explain the
product and factor market.
4. How does the physical and monetary flow
move between households and firms?
Benchmark Review
1. Name and give examples of productive
resources and resource payments.
2. How do buyers and sellers act in their
own self-interest?
3. Explain competition.
4. What is the “invisible hand”.
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Benchmark Review
Know and explain 4 advantages of the
free market?
What is Laissez- Faire?
What are the characteristics of socialism
and communism?
How does government affect the circular
flow diagram?
Benchmark Review
1.Identify several countries that lie in the continuum
from centrally planned and free market economies
2.Identify 7 basic principles of free enterprise.
3.Name 2 roles of the consumer in the free market.
4.What is the role of government in the free market?
Benchmark Review
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What is macroeconomics?
What is a business cycle?
What is GDP (gross domestic product)?
How does the government promote
economic strength and encourage
innovation?
Benchmark Review
1. What role does the government play in fighting
poverty?
2. What government programs attempt to aid those
facing poverty?
3. Explain and list examples of government
redistribution programs.
4. What is Demand?
Benchmark Review
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What is a public good?
What is a free rider?
Explain market failure.
What is an externality (positive
and negative)?
Benchmark Review
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What is “quantity demanded”?
What is the Law of Demand?
What is a demand schedule?
What are normal and inferior goods?
Benchmark Review
1. What causes a shift in demand?
2. What are complements and substitutes?
3. Know how to read and understand the
demand curve.
4. What is Supply?
Benchmark Review
1.What is “quantity supplied”?
2.What is the “Law of Supply”?
3.What effect does price have on supply?
4.What are fixed, variable and total costs?
Benchmark Review
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What is the relationship between marginal cost and
market price (marginal revenue)?
What is government’s influence on supply?
Explain the effects on supply for government
subsidies, taxation and regulation.
What is equilibrium?
Benchmark Review
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What creates surplus and shortage?
What is rationing?
What is a price ceiling and price floor?
What do minimum wage and rent control
create?
Benchmark Review
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In a free market, how do prices lead to an efficient
allocation of resources?
How do buyers and sellers communicate through
price?
What is considered a negative side effect of the
minimum wage?
What is the most obvious factor affecting demand
elasticity?
Benchmark Review
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What curve shows the relationship between the price and
the quantity customers are willing to purchase at?
What is the name of the point at which supply and
demand intersect?
While supply is based on willingness of producers to
supply, demand is most likely based on what?
What type of cost occurs when an individual pays for a
piano lesson instead of going to a movie?
Benchmark Review
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What is the most likely incentive for entrepreneurs
to start a business?
John is liable for all the debts of his company. John
has which type of business organization?
What is meant by the statement "money is a
medium of exchange"?
Before money was invented, how were goods and
services exchanged?
Benchmark Review
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Please use your textbook (glossary and index) to
answer your review questions
Use your notes as well
You may use your google machine as well
At the end of class, please cut up your questions and
place them in the zip lock bag; write group
members name on the bag with a sharpie
Benchmark Review
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Bart has decided to buy some water balloons rather
than get an extra milk at lunch. Choosing among
economic alternatives is referred to as
Mr. Green is opening a new bakery. He has
purchased an industrial oven. This oven represents
which factor of production?
An opportunity cost is