Download Video 1: Basics of Econ

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Unit 7 Study Guide
Video 1: Basics of Econ
1. Describe how the economic system is circular in nature. Why does this process continue throughout your
life?
2.
Define economics. Why should people understand economics?
3. Define opportunity cost and give an example from the videos to explain it.
4. What is the difference between needs and wants? Which is more important?
5. What are natural resources (give examples)? What are human resources? Why are they needed?
6. What is scarcity? Why is scarcity the basic economic problem? How does scarcity give goods and services
a value? What do we call that value?
7. Describe the difference between macroeconomics and microeconomics.
Video 2: Specialization & Trade
8. What does increased productivity do? How can specialization of labor/division of labor lead to
increased productivity? As a business owner, is increased productivity a good thing? Why?
9. Define absolute advantage in production.
10. Define comparative advantage.
Video 3: Economic Systems
11. What 3 questions define and economic system?
12. What are factors of production?
13. What is a planned economy? How do they typically exchange goods?
14. What is a command economy? What types of governments use a command economy?
15. What is the free market economy? Why do businesses produce a certain good? Who owns this type of
production?
16. What is a mixed economy? When does the government intervene in a mixed economy?
17. What type of economy does the U.S. use?
Video 4: Supply & Demand
18. What is supply?
19. What is demand?
20. What is voluntary exchange?
21. How do supply and demand determine the price of a good or service? What is the market or
equilibrium price?
22. What is a shortage? What happens to the price during a shortage? Who does a shortage benefit?
23. What is a surplus? What happens to the price during a surplus? Who does a surplus benefit?
24. What is the law of demand? Because of the law of demand, demand curves always fall in what direction?
25. The supply curves always fall in what direction? Why, what is it representing?
26. Describe how income level changes may affect market demand.
27. Describe how the number of consumers in an area might affect market demand.
28. Describe how consumer expectations and tastes might affect market demand.
29. What is supply? What is the law of supply? Because of the law of supply, supply curves always fall in
what direction?
30. How can productivity affect supply?
31. How can the cost of resources affect supply (give examples)?
Video 5: Macroeconomics
32. What is the GDP?
33. How the GDP measured?
34. Name one of the ways a GDP can be inaccurate way to demonstrate a country’s economic stability.
35. What is the difference between a recession and a depression?
Review Material
1. Memorizing the Bill of Rights (All 10 Amendments)
2. All discussed landmark cases
*Use the class quizlets to study these items as they have been relooped on every test thus far
3. Justice System Enforcement Agencies