Name___________________________________________ Economics EOC Review #1 Basic Economics and the American Economic System What is economics? Provide an example of a need and a want. During Arctic Survival, how was scarcity illustrated? During Arctic Survival, how were economic models used? What is a trade-off? Provide an example of a trade-off and an opportunity cost. List and define the four factors of production. 1. 2. 3. 4. What are the three basic economic questions? Define: Division of Labor and specialization How was economic interdependence illustrated in the film “The Lorax”? Types of Economies: Define the following economic models: 1. Market Economy – 2. Command Economy – 3. Traditional Economy – 4. Mixed Economy – The United States has a ____________________ economy. What is circular flow? How do we measure the value of our economy? Provide an example of a good and a service. Define: Productivity What economist developed the theory of capitalism? Vocabulary: Capitalism – Invisible Hand – Laissez Faire – Wealth of Nations – What philosopher/economist developed the theory of communism? Vocabulary: Bourgeoisie – Proletariat – Communism – What are the major characteristics of the American economy? 1. 4. 2. 5. 3. 6. What are the four major goals of the US Economy? 1. 2. 3. 4. Name____________________________________________ Economics Review #2 Supply and Demand & Personal Finance Define: Demand What factors affect demand? What is market demand? Provide an example of complimentary goods and substitute goods. What is the “law of demand”? What is utility? What is diminishing marginal utility? Define: Elastic Demand Define: Supply What factors affect supply? What is market supply? What is the difference between a shortage and a surplus? What is the “law of supply”? Create a supply schedule and a demand schedule, following their respective laws. Plot a demand curve (D) and a supply curve (S) using the data from your schedules. Be sure to label the market price. After completing your curves, show an increase in supply and label that curve S1. Show a decrease in demand and label it D1. Define: Personal Finance – What is the difference between disposable and discretionary income? What is a budget? Define: Consumer and Consumerism Define: Saving and Investing Vocabulary: Interest – Stock – Bond – Return – Name______________________________________________ Economics Review #3 Business, Labor, and Competition List and define the four major forms of business organization. 1. 2. 3. 4. What is the function of the “Articles of Partnership”? What is the function of a charter? What is the difference between limited and unlimited liability? Which business organization have each? Define: Stockholders and Board of Directors What is a labor union? List and define the two types of labor unions? 1. 2. What is collective bargaining? Tools of Labor Unions: 1. Strike 2. Boycott 3. Picketing Types of Union Organization: 1. Open Shop 2. Closed Shop 3. Union Shop a. Right-to-Work Laws What is the difference between arbitration and mediation? Types of Workers: 1. White-Collar 2. Blue-Collar 3. Agricultural Skill Levels: 1. Unskilled/Semi-Skilled 2. Skilled 3. Professional Competition: Perfect Competition – Imperfect Competition – Types of Imperfect Competition: 1. Monopoly – 2. Monopolistic Competition – 3. Oligopoly – Mergers – 1. Horizontal Merger -3. Conglomerate -- 2. Vertical Merger – 3. Take Over – What are Anti-Trust Laws? Define: Regulation and Deregulation Name____________________________________________ Economics Review #4 Business Cycle, Federal Reserve, Taxes, and International Trade What is the difference between public goods and private goods? What is GDP? How is it used? Draw and label the Business Cycle below Define: Recession, Depression, Expansion, Trough, and Peak Government Tools during a recession: Define: Fiscal Policy What is the function of money? Define: Currency What is barter? Types of Banks: Commercial Banks – Savings and Loans – Credit Unions – What is the FDIC? How much does the FDIC insure? What is the federal reserve? How many reserve banks are in the United States? Define: Monetary Policy Vocabulary: Discount Rate – Reserve Requirement – Inflation – Deflation – How does loose monetary policy affect the economy? How does tight monetary policy affect the economy? What are taxes? Revenue – Types of Taxes: Regressive Taxes – Progressive Taxes – Proportional Taxes – Federal Taxes: Income – Excise – Estate – Tariff – Social Security – State Taxes: Sales – Local Taxes: Property – National Budget – National Debt – National Deficit – Balanced Budget – What is foreign trade? Define: Globalization What is NAFTA? What is the WTO? What is the EU? How do the International Monetary Fund and World Bank manage the world economy?