Economics Test Reviews
Unit 1
 Characteristics of the U. S. free enterprise system
 How does competition influence markets in the free
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enterprise system?
Communist economic system
Be able to create a circular flow model
Opportunity cost
Business responsibilities
Be able to compare and contrast free enterprise,
socialist, and communist economic systems
Unit 1
 Advantages and disadvantages of corporations
 Sole proprietorships
 How does a corporation raise capital?
 How can government affect the circular flow model?
 Basic economic problem
 Friedrich Hayek
 Production possibilities curve
Unit 3
 Comparative advantage
 Absolute advantage
 Specialization
 Trade
 Tariff
 European Union
 North American Free Trade Agreement
 How does international trade shift the PPC?
 Opportunity cost
Unit 4
 Pure competition
 Monopolistic competition
 Oligopoly
 Monopoly
 Demand
 TIMERS
 TIGGERS
 Supply
 Price, quantity, equilibrium price, equilibrium quantity
 Be able to draw and interpret supply and demand curves
 Why supply and demand curves shift
 Market
 Non-price determinant of supply and demand
Unit 5
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Liquidity
Risks of investment
How to figure net worth
IRA
401K
Mutual fund
Five Cs of Credit
Benefits and costs of home ownership
How to payoff credit card debt?
Costs and benefits of bankruptcy
How to improve your credit score?
Open-end credit
Closed-end credit
Unit 6
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Income tax, excise tax, tariffs
State, local, and federal taxes
How does the government regulate our economy?
How does international trade effect our economy?
Revenues, expenditures
Characteristics of economic expansion
Who has the authority to tax?, 16th Amendment
OSHA
Expansionary and contractionary monetary policy
How do new technologies affect economic growth?
Economic indicators- unemployment rate, housing starts,
Consumer Price Index (a measure for inflation), PPI,
bankruptcies, Gross Domestic Product, stock market prices
Unit 7
 Commodity money
 Fiat money
 Representative money
 Who owns the Federal Reserve?
 What are reasons for the decline of the U. S. dollar’s value?
 Pros and cons of barter, currency, credit, and debit cards
 Phases of the business cycle
 Tight money policy and easy money policy
 Functions of money
 Monetary policy
 The Fed’s tools
 Federal Reserve System
 What happens when the reserve requirement is raised?