Economics Final Review Sheet



Economics Final Review Sheet

Be able to understand the following main ideas:

• What is the fundamental Economic Problem? Pg. 5

• What is the difference between a NEED and a WANT? Pg. 5

• Explain the concept of TINSTAAFL.

• Why is the study of economics important?

• What are the 3 basic economic questions that must be answered? Pg. 6

• What are FACTORS OF PRODUCTION? What do they include? Define each. Pg. 7

• What is a GOOD? Pg. 12

• What are the differences between CONSUMER GOODS and CAPITAL GOODS? Pg. 12

• Understand the concepts of VALUE, UTILITY, and WEALTH. Pg. 13

• What is a MARKET? Pg. 14

• What is PRODUCTIVITY? How is it improved? Pg. 15

• Explain the difference between a TRADE OFF and OPPORTUNITY COST. Pg. 19

• What is a COST BENEFIT ANALYSIS? Pg. 23

• What is the STANDARD OF LIVING? Pg. 24

• What is an ECONOMIC SYSTEM and what role does it play in society? Pg. 33

• Understand the 3 different types of economic systems (TRADITONAL, COMMAND, AND MARKET).

• What are some of the economic and social goals of the U.S.? Pg. 41

• What is SOCIAL SECURITY? Pg. 41

• What is CAPITALISM? How does this system work? What are some aspects of a FREE ENTERPRISE SYSTEM? Pg. 46

• Understand the different roles of the Entrepreneur, the Consumer, and the government. Pg. 48-50

• Explain the idea of CONSUMER SOVERIEGNTY. Pg. 49

• Be able to explain the different types of business organizations.

• What are the different types of MERGERS? Pg.68

• What are the different types of non-profit organizations? Pg. 75

• What is MICROECONOMICS? Pg. 89

• Understand all the aspects of SUPPLY and DEMAND (supply/demand schedule, supply/demand curve, law(s) of supply/demand, diminishing marginal utility, factors that affect supply/demand, and elasticity of supply/demand)

• What is a SUBSIDY? Pg. 117

• Understand the THEORY OF PRODUCTION. What are the 3 STAGES OF PRODUCTION? Pg. 122

• What are the different ways which cost is measured? Pg. 127

• Explain the difference between TOTAL REVENUE and MARGINAL REVENUE. Pg. 130

• What is PRICE and what are some of the advantages of a price system? Pg. 137

• What are some of the disadvantages of a RATIONING system? Pg. 139

• Explain what the relationship between a SURPLUS, SHORTAGE, and MARKET EQUILIBRIUM. Pg. 142

• Explain the COMPETITIVE PRICE THEORY. Pg. 148

• Explain the difference between PRICE CEILINGS and PRICE FLOORS. Pg. 151

• Define LAISSE-FAIRE. Pg. 163

• Identify the different types of MARKET STRUCTURES. (PERFECT COMPETITION, MONOPOLISITIC COMPETITION, OLIGOPOLY, and MONOPOLY) Pg. 164-169

• What 4 reasons might economic markets fail? Pg. 173-175

• What is MACROECONOMICS? Pg. 193

• Understand the development of Labor Unions. Pg. 194-196

• How do unions and management resolve differences? Pg. 200-202

• Understand the characteristics of the 4 categories of labor. Pg. 205

• What is a WAGE RATE and how is it determined? Pg. 207

• What are some employment issues that people have to deal with? (Decline of Union influence, two-tier wage system, lower wages based on gender, glass-ceiling, comparable worth, set-aside contracts, working part-time, and minimum wage) Pg. 211-216

• What is the G.D.P.? What makes up the G.D.P.? Pg. 341

• How is the NATIONAL INCOME measured? 344

• What effect does inflation have of G.D.P.? Pg. 350

• What are some major PRICE INDICES? Pg. 352

• Explain the difference between REAL and CURRENT G.D.P. Pg. 353

• Why is it good to express G.D.P. on a per capita basis instead of a total amount? Pg. 356

• What is a CENSUS? What trends does it show? Pg. 356

• What 3 factors do DEMOGRAPHERS look at in terms of population growth? Pg. 358

• What factors contribute to a changing population? Pg. 356-357

• Define STANDARD OF LIVING.

• Describe the business cycle. (highest point, lowest point, etc.) Pg. 376

• What was the GREAT DEPRESSION? Pg. 376

• Explain the different types of unemployment. Pg. 384-386

• What is meant by FULL EMPLOYMENT? Pg.387

• Define INFLATION. Identify the 5 causes of inflation. Pg. 391

• What is the DISTRIBUTION OF INCOME and identify the reasons it is unequal. Pg. 394-400

• What are some anti-poverty programs? Pg. 397-400

Good Luck!!! Study Hard!!!

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