Economics Review
Economic
Fundamentals
Microeconomics
Vocabulary
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Macroeconomics
Economic Fundamentals
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1A
1B
2A
2B
3A
3B
4A
4B
5A
5B
Economic Fundamentals 1A
• The idea that there are limited
resources to fulfill our wants is
called ___________________
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Economic Fundamentals 2A
• Provide a definition for
opportunity cost.
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Economic Fundamentals 3A
• What is the difference between an
economic system and a government
system?
• In other words, which two different
questions do they address?
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Economic Fundamentals 4A
• Explain the difference
between microeconomics and
macroeconomics.
• Give an example of each.
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Economic Fundamentals 5A
Laissez Faire:
• Translated from French to English, what
does it literally mean?
• People who support a laissez faire approach
to economics want more or less government
regulation of the economy?
• Laissez faire is an extreme approach of
which of the three major economic
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systems?
Economic Fundamentals 1B
• Describe the difference between
the words PUBLIC and PRIVATE
as they relate to an economy.
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Economic Fundamentals 2B
• List the three basic types of
economic systems in the world.
• Also, state what economic problem
each attempts to address as well as
that system’s particular answer to
the problem.
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Economic Fundamentals 3B
• I am deciding what to do with my
birthday money. I really want to buy
new shoes or go to a concert, but my
mom wants me to take my little brother
to the movies. If I choose to go to a
concert, what is the opportunity cost?
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Economic Fundamentals 4B
• Why are entrepreneurs one of the
most valuable economic resources?
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Economic Fundamentals 5B
• What are the
economics features of a
socialist country?
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Microeconomics
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1A
1B
2A
2B
3A
3B
4A
4B
5A
5B
Microeconomics 1A
• Explain the function of
currency.
• What is the difference between
how currency used to be
utilized and the current system
of fiat currency?
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Microeconomics 2A
• In a market system, it is said that
______________ is the motivator and
______________ is the regulator.
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Microeconomics 3A
• In the market for #2 lead pencils, the
equilibrium price is $0.30 per pencil.
• What would the price ceiling have to be?
• What possible consequence results if the
government imposes a price ceiling?
• Why would the government enact a price
ceiling for this product?
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Microeconomics 4A
• Describe the difference between
stocks and bonds.
• For each, address:
– level of ownership
– relative risk
– payoff
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Microeconomics 5A
• Explain the concept of the
invisible hand, who its
originator was, and his
significance in the world of
economics.
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Microeconomics 1B
• List the acronyms for
what determines
DEMAND as well as
what determines SUPPLY
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Microeconomics 2B
• When is the equilibrium
price reached?
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Microeconomics 3B
• What does the term APR mean? / What
is it?
• If I borrow $1000 at 12% APR for 20
years, how much can I expect to pay
the first year in addition to the original
$1000 I borrowed?
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Microeconomics 4B
• The Law of _______ states that a
higher price will cause a decrease in
the quantity and a lower price will
cause an increase in the quantity.
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Microeconomics 5B
• Which of the following represents the correct
relationship between supply and demand?
A)
B)
C)
P
P
R
R
I
I
C
C
E
E
Quantity
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Quantity
Macroeconomics
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1A
1B
2A
2B
3A
3B
4A
4B
5A
5B
Macroeconomics 1A
• Do banks carry the complete sum of
cash of each of its customers at all
times?
• Why or why not?
• Is this a problem?
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Macroeconomics 2A
• List AND describe the Four Factors of
Production
• In other words, what goes into making
something?
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Macroeconomics 3A
• What is the difference between a
country’s GDP and their GNP?
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Macroeconomics 4A
• A sustained increase in the general price
level is known as ______________
(This is why I cannot buy a stove for $8.00
today, like Charles Ingalls did in the 1800s)
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Macroeconomics 5A
• What is specialization?
• In what two ways is it
beneficial to an economy?
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Macroeconomics 1B
• The United States follows
which basic economic
model?
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Macroeconomics 2B
• Why do lenders charge interest?
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Macroeconomics 3B
• What does the term PPF stand for?
• What is a PPF?
• What is the purpose of a PPF?
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Macroeconomics 4B
•
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Macroeconomics 5B
• In the United States, wealth IS/IS NOT
(choose one) equally distributed?
• In the United States, 1% of the
population owns roughly _______ %
of the overall wealth. (_____ chairs
for one person and _____ chairs for the
other nine to share)
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Vocabulary
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1A
1B
2A
2B
3A
3B
4A
4B
5A
5B
Vocabulary 1A
• Describe the difference between a
SHORTAGE and a SURPLUS
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Vocabulary 2A
• Describe the difference between a
SUPPLEMENTARY good and a
COMPLEMENTARY good.
• Give an example of each.
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Vocabulary 3A
• Define the term WEALTH.
• How is it different from being RICH?
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Vocabulary 4A
• What does the term EXTERNALITY
mean?
• Provide an example of both a positive and
negative externality.
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Vocabulary 5A
• Explain the principles of the
Trickle Down Theory.
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Vocabulary 1B
• Describe the difference
between a NORMAL good
and an INFERIOR good.
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Vocabulary 2B
• What does the term PER
CAPITA mean?
• How is it used in relationship to
the overall economy?
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Vocabulary 3B
• Define the term AGGREGATE.
• Provide a synonym for the word as
well.
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Vocabulary 4B
• What does the term SUBSIDIZE
mean?
• What would it mean for the US
government to subsidize regular
gasoline over diesel, for example?
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Vocabulary 5B
• What is a FLAT TAX?
• What is a GRADUATED TAX?
• Which is more COMMUNIST in
nature? Why?
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