Econ Review Sheet



Econ Review Sheet

Mrs. Seiders

Test Date: Thursday Dec. 17

YOU WILL NEED A CALCULATOR!

Essay: You will be given 1 of the following essay prompts on test day.

1) Capitalism is defined as hands-off from the government towards business. In our style of capitalism, is this true? If so, how? If not, why not? (Provide at least 2 examples.)

2) Promoting competition is a key goal of the government. What steps does it take to try to build competition? (Provide at least 1 example from we talked about in class.)

Section Reviews – Besides these questions, it is suggested to review H.W. questions as well!

Section 1: Intro to Econ.

1) What are the three essential questions that all economies face?

2) What are the three types of resources?

3) Define the 4 type of economic systems?

a. Traditional Economy

b. Market Economy

c. Mixed Economy

d. Command Economy

4) You should be able to identify them in various scenarios. (Think of the cows! Also, remember TRADE and REGULATE)

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5) Distinguish between a want vs. a need

6) You should be able to define the following:

a. Wants

b. Scarcity

c. Economics

d. Resources

e. Economic System

Section 2: Economic Decisions

1) What are opportunity costs?

a. Be able to identify them in various scenarios.

2) What is the purpose of doing a benefit-cost analysis?

a. Be able to calculate them in various scenarios.

3) Why might a business stay open additional hours?

a. (How do you do a marginal cost/revenue analysis?)

4) How is revenue different from profit?

5) You should be able to define the following:

a. Trade-off

b. Opportunity Cost

c. Fixed Costs

d. Variable Costs

e. Total Costs

f. Marginal Costs

g. Marginal Revenue

h. Revenue

i. Benefit-Cost Analysis

Section 3: Demand and Supply in a Market Economy (Remember the 5 Below prizes)

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1) What are the 3 functions of price?

2) A. In a market economy, who sets the prices and the number of production?

B. How about in a command system?

3) What are factors that could impact price?

a. How about supply?

b. How about demand?

4) You should be able to define the following:

a. Consumers

b. Producers

c. Demand

d. Supply

e. Market

f. Competition

g. Shortage

h. Surplus

i. Equilibrium Price

Section 4: GDP

1) * Be able to calculate GDP. (Think GDP quiz!)

* Be able to calculate GDP per capita.

2) * What is counted towards GDP?

* What is not counted?

3) You should be able to define the following:

a. Gross Domestic Product

Section 5: Capitalism

1) What are the 6 features of capitalism?

2) Why does the government encourage competition?

3) You should be able to define the following:

a. Capitalism

a. Profit

b. Profit Motive

c. Voluntary exchange

d. Competition

e. Laissez-faire economics

Section 6: How Businesses are organized

1) You should be able to define the following:

a. Sole proprietorship

a. Liability

b. Partnership

c. Corporation

d. Board of Directors

1) What are the different kinds of partnerships?

2) What are the advantages/disadvantages of:

a. Corporations

b. Partnerships

c. Franchises

3) The stages of evolution from a sole proprietorship to a corporation

4) Why do businesses want to evolve into corporations?

5) How is a franchise different from other businesses?

Section 7: Government Involvement in the Economy

1) What is the difference between public vs private goods?

2) Why do businesses not get involved with public goods?

3) How do mergers evolve into monopolies?

4) How and why does the government maintain competition among businesses?

5) When does the government issue a recall?

6) You should be able to define the following:

a. Recall

b. Merger

d. Antitrust Law

e. Monopoly

f. Private goods

g. Public goods

Section 8

: Measuring the Economy (Remember Adidas!)

1) Be able to recreate and explain the business cycle.

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ALL DONE!

40 questions

Multiple Choice

Matching

1 Essay Question

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