Econ Review Sheet - Tredyffrin/Easttown School District



Econ Review Sheet

Mr. Holmes

Test Date: Tuesday 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? (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.)

3) Many small businesses fail. Should government provide assistance to such businesses, or should it continue to let the free market determine who survives in the marketplace? (Provide at least 2 examples that support your reason.)

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?

2) What are the three types of resources?

3) What are the different types of economic systems?

a. You should be able to identify them in various scenarios. (Think of the cows!)

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(Remember TRADE and REGULATE)

4) Distinguish between a want vs. a need

5) You should be able to define the following:

a. Wants

b. Scarcity

c. Economics

d. Resources

e. Economic System

f. Traditional Economy

g. Market Economy

h. Mixed Economy

i. Command Economy

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 do them in various scenarios.

3) Why might a business stay open additional hours? (How do you do a benefit-cost 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 Wii or Muffins)

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1) What are the 3 functions of price?

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

a. In a command system?

3) What are factors that could impact price?

a. How about supply?

4) When supply goes up, demand goes _______ and prices go __________

a. When supply does down, demand goes _______ and prices go ____________

5) 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!)

a. Be able to calculate GDP per capita.

2) What is counted towards GDP?

a. What is not counted?

3) You should be able to define the following:

a. Gross Domestic Product

b. Product

Section 5: Circular Flow Model

1) Be able to fill out the flow model BOTH ways! (Use your video sheet to help with this!)

2) Does government get involved in the circular flow model?

a. If so, how?

3) You should be able to define the following:

a. Productivity

b. Economic Growth

c. Factor Market (Use your video sheet to help with this!)

d. Product Market (Use your video sheet to help with this!)

e. Circular Flow Model

Section 6: Capitalism

1) What are the 6 features of capitalism?

2) Who do we credit for Capitalism? (No, not me!)

3) Why does the government encourage competition?

4) You should be able to define the following:

a. Capitalism

b. Free Enterprise Systems

c. Profit

d. Profit Motive

e. Voluntary exchange

f. Competition

g. Private property rights

h. Laissez-faire economics

Section 7: How Businesses are Organized

1) Why do businesses want to evolve into corporations?

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

3) What are the advantages/disadvantages of:

a. Corporations

b. Partnerships

c. Franchises

4) How is a franchise different from other businesses?

5) What are the different kinds of partnerships?

6) You should be able to define the following:

a. Sole proprietorship

b. Financial Capital

c. Liability

d. Partnership

e. Corporation

f. Charter

g. Board of Directors

h. Nonprofit Organization

Section 8: 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 call a recall?

6) You should be able to define the following:

a. Recall

b. Natural Monopoly

c. Merger

d. Antitrust Law

e. Monopoly

f. Private goods

g. Public goods

h. Externalities

Section 9: Measuring the Economy (Remember Little Caesars!)

1) How is Real GDP different from GDP?

2) Be able to recreate/explain the business cycle.

3) Does the business cycle happen to countries?

4) Other than GDP, what else does the government use to measure the health of the economy?

5) Why do we pay a different amount for a good versus what our parents/grandparents paid?

6) What is the value of the stock indexes?

7) You should be able to define the following:

a. Business Cycle

a. Recession

b. Depression

c. Unemployment Rate

d. Fixed Income

e. Inflation

f. Bear Market

g. Bull Market

h. Real GDP

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ALL DONE!

40 questions

Multiple Choice

Matching

1 Essay Question

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