Final Exam Review

 

Unit One:  Economic Questions

Chpts. 1, 2, 16, 17

Scarcity

Opportunity costs

Production Possibility Curve

Factors of Production/ Economic Resources

Sunk Costs, Variable Costs, Fixed Costs

Scarcity leads to…specialization, division of labor, social interdependence, global interdependence,

Capitalism , Communism/Socialism, Mercanitilism

Traditional, Command, Market Economies

Mixed Economies

Problems in the third world

 

 

Unit Two:  The Market Economy

Chpts.  3, 4, 5

Demand

Shifts in demand

Changes in the quantity demanded

PPINE

Price elasticity of demand

 Normal, Inferior, Substitute and Complementary goods

Utility
Diminishing Marginal Utility (or Returns)

Total Revenue Test

Supply

Shifts in Supply

Changes in the quantity supplied

PGTENT

Price Elasticity of Supply

Diminishing Marginal Product

Profit Motive

Equilibrium Price

Shortages, surpluses

Price ceiling and floors

 

 

 

Unit Three:  Competition

Chpts.  6, 7, 8

Types of Businesses:  sole proprietor, partnerships, corporations

Pros and cons of all of these

Models of Competition:  perfect competition, monopolistic competition, oligopoly, monopoly

Supply and demand in the labor market

Monopsony

Labor Unions (closed shop, open shop, union shop)

MAL

Globalism

 

 

 

 

Macroeconomics

Chpts. 10, 11

Aggregate Supply and demand

Four reasons for a shift in aggregate supply, and four reasons for a shift in aggregate demand

Supply shock

Complete Circular Flow of Money and Products

GDP = C + I + G + (x-m)

Inflation (cost-push and demand-pull)

Stagflation

Poverty

Lorenz Curve

Gini Index

Philips Curve

Laffer Curve

Types of  Unemployment

 

 

Fiscal Policy

Chpts. 12, 15

Roles of the Government

Taxation (justifications, types of taxes, specific taxes)

Demand-side economics (John Maynard Keynse)

Supply Side Economics (Jean-Baptiste Say)

Montarists

 

 

Monetary Policy

Chpts. 13, 14

Role of the Federal Reserve System

Money

Banking

Easy-money and tight money policies

Reserve Requirements

Discount Rates

Open-Market Operations

 

 

Stock Market and Financial Planning

Chpt. 9

Stocks

Bonds

Stock splits

Short sales

Efficient Market Theory

Futures