Mr. Hall's Class



Fundamentals of EconomicsDefine scarcity. Define and give examples of productive resources (aka the factors of production) What are the two types of “human resources?”Be able to discuss the following about Entrepreneurship Why are entrepreneurs willing to take risk? – What are possible downsides of this risk?How do entrepreneurs create jobs?What role do entrepreneurs play in innovation/improving standard of living?How do entrepreneurs improve society?What are the functions of money? What is a medium of exchange? What is opportunity cost? Give an example of opportunity cost. What is a production possibilities curve? Illustrate a production possibilities curve that shows the tradeoffs between two options and explain the opportunity costs involved with making each good. How does a production possibilities curve show efficiency? Growth? What is marginal cost? What do rational people do when the marginal benefit outweighs marginal cost? Explain how individuals and governments respond to incentives in predictable ways.What is the division of labor? Give examples of how people and businesses specialize? What is voluntary exchange? How do people benefit from voluntary exchange?Describe the meaning of the term market. What are the characteristics of a command economy? What are the characteristics of a market economy?Why are almost all economic systems “mixed economies?” - explain the spectrum of mixed economies. Define each of the following characteristics and match the characteristic to the appropriate economic system (either market or command): private ownership, profit motive,consumer sovereignty, competition, government regulation. What are the three economic questions? Explain how well each of the following social goals are met in each economic system (market and command): freedom, security, equity, growth, efficiency stability What are the different ways to allocate scarce resources? How do the different economic systems allocate resources and goods differently? Explain why the government, in a market economy, provides public goods and services. Explain why the government, in a market economy, redistributes income. Explain why the government, in a market economy, resolves market failures. Explain why the government, in a market economy, protects property rights. What social goals is the government, in a market economy, trying to achieve by addressing the issues in questions 25-28? Why does the government regulate monopolies? What social goal is the government trying to promote? What is a market failure? Define externality. Give an example of a public good and a positive or negative externality. Explain the effects on consumers and produces caused by government regulation and deregulation. Give specific examples of each.Define productivity. How do you have to utilize input to maximize output? Relate the idea of productivity to a production possibilities curve. Include both inefficient and efficient uses of resources.How does investment in equipment and technology lead to economic growth?How can investment in human capital lead to a higher standard of living? Explain this statement: profit motive and voluntary exchange are major driving forces in a market economy. Explain this statement: security, stability, and equity are key characteristics of a command economy. What does it mean when a country has absolute advantage? What is comparative advantage? How are trade and comparative advantage related? Know the meaning of the following terms: Allocate Income Interest RateRevenue Anti-Trust Laws Output Input Externality Consumer Goods vs. Capital goodsUnemployment ................
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