Download Economics ~ Final Exam Review

Economics ~ Final Exam Review
UNIT 1: AN INTRODUCTION TO ECONOMICS
Chapter 1: What is Economics?
Section 1: The Basic Problem in Economics p 3
Objectives:
How do wants and needs differ?
Why does scarcity face all people at all times?
What are the 4 factors of production?
Section 2: Trade-Offs p. 12
Objectives:
How are trade-offs and opportunity costs related?
How can society’s trade-off’s be shown on a production possibilities curve?
Section 3: What do Economists Do? p. 18
Objectives:
How do economists use models to study the real world?
Why are there different schools of economic thought?
Chapter 2: Economic Systems and the American Economy
Section 1: Economic Systems p. 31
Objectives:
What 3 questions must all economic systems answer?
What are the major types of economic systems and their differences?
Section 2: Characteristics of the American Economy p. 40
Objectives:
What is the role of government in our free enterprise economy?
How do freedom of enterprise and freedom of choice apply to the
American economy?
What roles do private property, the profit incentive, and
competition play in the American economy?
Section 3: The Goals of the Nation p. 46
Objectives:
What are the major goals of a market economy?
How can people balance economic rights with economic responsibilities?
UNIT 3: Microeconomics: Markets, Prices, and Business Competition
Chapter 7: Demand and Supply
Section 1: Demand p. 169
Objectives:
How does the principle of voluntary exchange operate in a market
economy?
What does the law of demand state?
How do the real income effect, the substitution effect, and
diminishing marginal utility relate to the law of demand?
Section 2: The Demand Curve and Elasticity of Demand p. 177
Objectives:
What does the demand curve show?
What are the determinants of demand?
How does the elasticity of demand affect the price of a given product?
Section 3: The Laws of Supply and Supply Curve p. 186
Objectives:
What is the law of supply?
How does the incentive of greater profits affect quantify supplied?
What do a supply schedule and supply curve show?
What are the 4 determinants of supply?
Section 4: Putting Supply and Demand Together p. 194
Objectives:
How is the equilibrium price determined?
How do shifts in equilibrium price occur?
How do shortages and surpluses affect price?
How do price ceilings and price floors restrict the free exchange of prices?
Chapter 9: Competition and Monopolies
Section 1: Perfect Competition p. 233
Objectives:
What are the 5 conditions of perfect competition?
Why is agriculture often considered an example of perfect competition?
How does perfect competition benefit society?
Section 2: Monopoly, Oligopoly, Monopolistic Competition p. 239
Objectives:
What are 4 characteristics of a pure monopoly?
What characterizes an oligopoly?
What are 5 characteristics of monopolistic competition?
Section 3: Government Policies Toward Competition p. 248
Objectives:
What is the difference between interlocking directorates and mergers?
What is the purpose of federal regulatory agencies?
How has some regulation hurt consumers?
UNIT 5: MICROECONOMICS: THE NATION’S ECONOMY
Chapter 13: Measuring the Economy’s Performance
Section 1: National Income Accounting p. 343
Objectives:
What 4 categories of economic activity are used to measure GDP?
How do the 3 measures of income – national, personal, and
disposable- differ?
Section 2: Correcting Statistics for Inflation p. 350
Objectives:
What is the relationship between the purchasing power of money
and the rate of inflation?
How do the consumer price index and the producer price index
differ in what they measure?
Section 3: Aggregate Demand and Supply p. 356
Objectives:
Why is there an inverse relationship between aggregate quantity
demanded and the price level?
What causes the aggregate supply curve to slope upward?
How do you use aggregate demand and supply analysis to
determine the equilibrium price level?
Section 4: Business Fluctuations p. 360
Objectives:
What are the phases of a typical business cycle?
Section 5: Causes and Indicators of Business Fluctuations p. 364
Objectives:
What are some of the potential causes of business fluctuations?
What are the 3 broad categories of economic indicators?
Chapter 15: The Federal Reserve System and Monetary Policy
Section 1: Organization and Functions of the Federal Reserve System p. 399
Objectives:
How is the Federal Reserve System in the US organized?
What are the functions of the Fed?
Section 2: Money Supply and the Economy p. 407
Objectives:
What are the differences between loose money and tight money policies?
What is the purpose of the fractional reserve banking?
How does the money supply expand?
Section 3: Regulating the Money Supply p. 412
Objectives:
How can the Fed use reserve requirements to alter the money supply?
How does the discount rate affect the money supply?
How does the Fed use open-market operations?
What are some of the difficulties of carrying out monetary policy?
UNIT 6: THE INTERNATIONAL SCENE
NETFLIX and UpFront Article related to: Death by China
Objective:
Identify the concerns and issues that have arisen b/c of allowing
China to join the World Trade Organization