ESSENTIAL LEARNINGS – ECONOMICS



Final Assessment Review Guide

Economics

The final assessment in Economics will be given in one sitting, and contain two parts. First there will be a multiple choice component; and secondly, there will be a written graphing component related to chapters #7 and #13. Refer to bolded items in those respective chapters for more information.

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• This review guide is intended to guide you in reviewing the concepts covered in economics.

• You should review notes, guided readings, and any other assignments given.

• Re-read your text where needed.

• Concepts not covered due to time constraints will not be covered on the exam.

• Organize, Prioritize, Study!

INTRODUCTION & ECONOMIC SYSTEMS

Chapter #1

• Definition Economics, Microeconomics/Macroeconomics

• Scarcity

• Opportunity Costs

• Four Factors Production

• Production Possibilities Curve

Chapter #2

• Define Economic System

• Three Fundamental Questions

• Characteristics Market Economy

• Command Economic Systems (socialism/communism)

• Mixed Economies (defined)

• Circular Flow Model

MICROECONOMICS

Chapter #7

• Demand, Supply

• Law of Demand, Law of Supply

• Demand Curves & Supply Curves (be able to represent & interpret graphically)

• Determinants of Demand/Supply

• Equilibrium/Changes In Equilibrium (be able to represent & interpret graphically)

• Changes In Demand vs. Changes In Quantity Demanded (be able to represent & interpret graphically)

• Changes In Supply vs. Changes In Quantity Supplied (be able to represent & interpret graphically)

• Elasticity/Determinants of Elasticity

• Shortages/Surpluses (be able to represent & interpret graphically)

• Price Floors/Ceiling (be able to represent & interpret graphically)

• Law of Diminishing Marginal Utility

• Law of Diminishing Marginal Returns

Chapter #8

• Entrepreneur

• Factors: Starting Business

• Sole Proprietorship

• Partnership

• Corporation Defined, Stock/Bonds, Board Directors, Pros/Cons Incorporation

• Franchises

Chapter #9

• Market Structure Defined

• Monopoly (characteristics)

• Mergers: Horizontal, Vertical, Conglomerates

• Types of Monopolies

• Economies of Scale

• Government Regulation: Antitrust Regulation (legislation/agencies/goals regulation)

Chapter #10

• Productivity/Efficiency

• Technology & Production: Automation, Mechanization, Robotics, Assembly Line, Division of Labor

Chapter #12

• Civilian Labor Force (fig 12.1)

MACROECONOMICS

Chapter #13

• National Income Accounting

• GDP/Real GDP (equivalence of output & national income)

• C + I +G + X

• Inflation/Deflation

• Price Indexes (CPI/GDP)

• Aggregate Supply/Demand (be able to represent & interpret graphically)

• Equilibrium GDP (be able to represent & interpret graphically)

• Business Cycle Model/Causes

• Economic Indicators (leading, coincident, lagging)

Chapter #14

• Functions of Money (3)

• Characteristics of Money (6)

• Types of Money (3)

• M1 & M2 Definition

• Near Moneys

• Assets/Liquidity/Velocity

Chapter #15

• The Federal Reserve, Functions

• Fractional Reserve Banking

• Monetary Policy (loose/tight)

• Tools of Monetary Policy (discount rate/reserve requirement/open market operations

Chapter #16

• Public versus Private Goods

• Social Insurance Programs (social security/Medicare)

• Public Assistance Programs (welfare/Medicaid)

• Externalities (positive/negative)

• Government Regulation (16.2)

• Pros/Cons Government Involvement

• National Debt Defined

• Budget Deficit/Surplus/Balance

• Taxation Principles (ability to pay/benefits received)

• Types of Taxes (progressive/regressive/proportional)

Chapter #17

• Unemployment Defined/Types (fig 12.1)

• Full Employment

• Types Inflation (cost push/demand pull/stagflation)

• Fiscal Policy: Tools/Examples

• Circular Flow – Leakages/Injections

INTERNATIONAL TRADE

Chapter #18

• Comparative Advantage

• Absolute Advantage

• Exchange Rates – Supply & Demand Currencies (floating rates)

• Depreciation/Appreciation Currencies/Devaluation

• Balance of Trade

• Trade Restrictions (tariffs/quotas/embargoes)

• Free Trade Argument (pros/cons)

• Trade Agreements/Examples

Chapter #19

• Developed/Developing Nations (characteristics

• Process of Development ($: investment/aid)

• Obstacles To Development

• China – Case Study

Chapter #20

• Globalization (defined)

• Multinationals

• Pros/cons of Globalization

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