Economics
Mr. Joseph
Economics Final Review Sheet
The following list should be extremely helpful to you in studying for the final. While I am not
guaranteeing it to be all-inclusive, I took care to base it on the test as much as possible. As always, any
and all material that has been assigned or discussed is fair game. We can discuss any specific questions
you have in class. You should study with a sense of optimism, the test is very doable if you put in the
work. Good Luck…
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Coordination definition of economics
Scarcity
Marginal cost vs. Marginal Benefit
The Decision Making Rule
Sunk Costs
The impact of Social and Political Forces
on the economy
Positive vs. Normative Economics
Production Possibility Curves
Differences between Market and Socialist
economies
Safety Net
Law of Demand
Law of Supply
Factors that cause movement along
curves
Factors that shift the Supply and Demand
curves
Equilibrium
Excess Supply and Demand
Price Ceilings
Price Floors
Shortages
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Surpluses
3rd Party Payer Markets
Elasticity (including how to calculate)
Relationship between Elasticity and
Substitution
Factors that affect Substitution
Relationship between elasticity and
revenue
Inferior vs. Normal Goods
Excise taxes
Principles of taxation (progressive,
regressive, proportional)
Calculating federal income tax and the
meaning of marginal rates
Interest Rates
Impact of Interest Rates on spending and
saving
Gross Domestic Product
Unemployment (Definition, Implications
of Definition, Purpose of Reporting, etc.)
CPI
The Federal Reserve