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1.
Economics
EOCT Review Part I
What are the three basic questions faced by
people who produce products?
21.
How is land paid for?
22.
How is labor paid for?
23.
How is capital paid for?
24.
How are entrepreneurs paid?
25.
What are some ways to increase
productivity?
26.
What is the difference between
macroeconomics and microeconomics?
27.
What is profit motive?
What is the major strength of the
traditional economy?
28.
How does the income effect change the
demand of a product?
What is an advantage of a command
economy?
29.
How does productivity affect the supply of
a product?
What is an advantage of a market
economy?
30.
What are the three stages of production?
2.
What is the basic fundamental economic
problem facing society?
3.
What is a traditional economy?
4.
What are the four factors of production?
5.
What is a command economy?
6.
What is a market economy?
7.
8.
9.
10.
Name two countries that have a command
economy.
31.
What does a surplus do to the price of a
product?
11.
What is economics the study of?
32.
What does a shortage do to the price of a
product?
12.
What is the difference between a good and
a service?
33.
What is minimum wage an example of?
13.
What is the difference between human and
physical capital?
34.
List the five conditions for pure
competition.
14.
What is a disadvantage of a market
economy?
35.
What is a natural monopoly?
36.
15.
What is a disadvantage of a command
economy?
What are some of the dangers of
monopolies?
37.
16.
What type of economy does the United
States actually have
How does technology affect the price of a
product?
38.
How does consumer taste affect the
demand of a product?
39.
What happens when price ceilings are
placed on apartments?
40.
Give an example of an elastic product.
What happens to demand when the price of
an elastic product goes up?
17.
What is the most desirable alternative
given up as a result of a decision?
18.
What does capitalism thrive on?
19.
What is an entrepreneur?
20.
What are trade-offs?
41.
Give an example of an inelastic product.
What happens to demand when the price of
an inelastic product changes?
42.
What do taxes do to the supply of a
product? Subsidies?
43.
What is a geographic monopoly?
44.
Give an example of public goods.
45.
What does the cost of inputs do for the
supply of a product?
46.
Why does production go down in the Third
Stage?
47.
60.
Define laissez-faire.
61.
Define deregulation. What industries have
been deregulated recently?
62.
List the three roles of money.
63.
What is another term for a market clearing
price?
64.
What is the major difference between
perfect competition and monopolistic
competition?
65.
On a production possibilities curve, what
would show inefficient use of resources?
1.
Economics
EOCT Review, Part II
Define macroeconomics.
2.
What is a proportional tax?
3.
What is a progressive tax?
4.
What is a regressive tax?
5.
What type of tax is a tax on the
manufacture or sale of items such as
gasoline and liquor?
6.
What is the dollar amount of all final
goods and services produced within a
country’s national borders?
What is a technological monopoly?
48.
What is equilibrium price?
49.
What does the number of sellers do for the
supply of a product?
50.
What does government regulations do for
the supply of a product?
51.
What does the substitution effect have on
the demand of a product?
52.
What is the law of supply?
53.
What is a government monopoly?
54.
What are some characteristics of
oligopoly?
7.
What is the formula used to measure the
inflation rate?
55.
In a circular flow what goes to the factor
market?
8.
What type of inflation states that labor
groups cause inflation?
56.
In a circular flow what goes to the product
market?
9.
57.
How does the government get money in
the circular flow?
What is the dollar value of all final goods,
services, and structures produced in one
year with labor and property supplied by
U.S. residents?
10.
How do economists define a recession?
11.
What type of unemployment is caused by
workers between jobs?
58.
59.
What is a rational economic decision?
What are some ways to cause the
production possibilities curve to shift
outward? Inward?
12.
What type of inflation is caused by all
sectors in the economy trying to buy more
than the economy can produce?
29.
What happens to the money supply when
the FED buys government securities?
Sells government securities?
13.
What is expansion?
30.
What type of unemployment is the most
dangerous? Describe it.
14.
What type of unemployment is caused by
changes in the weather?
31.
What type of unemployment is caused by
ups and downs in the economy?
32.
The buying and selling of government
securities is which tool of monetary
policy?
15.
What is technological unemployment?
16.
What is the wage-price spiral view of
inflation?
17.
How many districts are there in the Federal
Reserve System? Which district is Atlanta
found in?
33.
If the Fed increases the reserve
requirement, what will happen to the
money supply?
18.
List two reasons for the structure of the
Fed.
34.
If the economy is in a recession, what
fiscal policy could the government use to
strengthen the economy?
19.
List the three major tools of monetary
policy used by the Fed.
35.
If the Fed sells government securities,
what will happen to the money supply?
List some of the tools of fiscal policy that
can be used by the federal government.
36.
If the Fed decreases the reserve
requirement, what will happen to the
money supply?
37.
If the economy is experiencing deflation,
what could the Fed do to stop it?
38.
What is the difference between debt and
deficit?
39.
Who makes fiscal policy decisions?
What things does the Federal Advisory
Council do for the Fed?
40.
List some of the countries that belong to
OPEC.
List some things that affect aggregate
demand.
41.
List some of the countries that belong to
the European Union.
List some things that affect aggregate
supply.
42.
What type of tariff is designed to raise
money?
43.
What are quotas?
44.
Explain what a trade deficit is.
45.
In what type of economic system are the
means of production privately owned?
20.
21.
Who selects the Board of Governors of the
Fed?
22.
What things does the Federal Open Market
Committee do for the FED?
23.
What are banks that belong to the Federal
Reserve System called?
24.
25.
26.
27.
28.
What happens to the money supply when
the reserve requirement is increased?
Decreased?
What happens to the money supply when
the discount rate is increased? Decreased?
46.
List some countries that belong to
ASEAN.
65.
Explain what a savings account is.
66.
Explain what a US Treasury Bond is.
47.
List the three countries that are part of
NAFTA.
67.
Explain a Stock Mutual fund.
48.
What type of tariff is designed to protect
domestic industries?
68.
Explain stock.
49.
What is the key to trade?
69.
Give examples of who benefits and who
loses from inflation.
50.
In what type of economic system are the
means of production collectively owned?
70.
Define progressive tax.
71.
Define regressive tax.
72.
Define proportional tax.
73.
Explain how an increase in sales tax
affects different income groups.
74.
List factors that affect credit worthiness.
75.
Explain the difference between simple and
compound interest rates.
51.
What is the difference between an absolute
and comparative advantage?
52.
List the five reasons for protecting the U.S.
from foreign goods.
53.
In what type of economic system are the
basic productive resources owned by the
government?
54.
What is collateral?
55.
Define junk bonds.
76.
Simple Interest Formula
56.
Explain that people respond to positive and
negative incentives in predictable ways.
77.
Compound Interest Formula
78.
Continuous Compound interest formula
57.
Use a rational decision making model to
select one option over another.
79.
Health insurance
80.
Auto insurance
81.
Disability insurance
82.
Property insurance
83.
Premium
84.
Asset protection
85.
Deductible
86.
Shared liability
58.
Create a savings or financial investment
plan for a future goal.
59.
What services are offered by a bank?
60.
What services are offered by a credit
union?
61.
62.
What services are offered by a savings and
loan?
What services are offered by a Payday loan
company?
63.
Explain reasons for the spread between
interest charged and interest earned.
87.
Identify skills that are required to be
successful in the workplace.
64.
Give examples of the direct relationship
between risk and return.
88.
Explain the significance of investment in
education, training, and skill development.
15.
What type of business organization has
limited liability, but less control over
decisions?
16.
Why might the Federal Reserve sell
government securities and raise the
discount rate?
Money is a standard of value when we do
what with it?
17.
A nation’s imports are $5.2 billion and its
exports are $5.3 billion. What does the
nation have?
A limit on the number of a particular item
that can be imported from a particular
country is called what?
18.
What type of workers suffer the most from
inflation?
19.
In the circular flow, labor flows from
_____________ through the
_____________ market to the
_________________.
20.
Give an example of an entrepreneur.
21.
What is the disadvantage of choosing an
insurance policy with a high deductible?
22.
What is another name for the market
clearing price?
EOCT Review III
These questions are totally random and cover
many different topics and categories.
1.
Who answers economic questions in a
command economy?
2.
3.
4.
What term means a measure of inflation?
5.
Draw a basic production possibilities
curve. List three things that can shift the
curve outward.
6.
Product differentiation or slightly different
products is an example of what type of
market structure?
7.
A person being laid off during an
economic recession is experiencing what
type of unemployment?
8.
What is the difference between absolute
and comparative advantage?
9.
What type of personal investments are the
most risky?
10.
Which basic economic problem does the
U.S. share with all nations?
11.
12.
13.
14.
List three reasons the supply curve could
shift to the left for the blueberry market.
If aggregate demand is increasing quickly,
but aggregate supply is increasing slowly,
what would be the result?
What does it mean when a country’s
currency depreciates?
A person deposits $50 in his savings
account instead of buying a video game.
What is the opportunity cost of the
decision?
23.
Country/Currency
Foreign
U.S. Dollars
Currency in
in Foreign
U.S. Dollars
Currency
Mexico/Peso
1 Peso=
$1=10.70
$0.093
pesos
$200 in U.S. currency would be how much in pesos?
24. Two workers own a lawn business. What is
the best way they can increase their
productivity?
25. Under what circumstances will two nations
trade?
26. When a price is at equilibrium, what does that
mean?
27. What is the effect of a U.S. tariff on imports?
28. Two advantages of a market economy over a
command economy are what?
29. A tax that decreases as your income increases
would be called what?
30. What group in the U.S. establishes monetary
policy?
31. Why might a person oppose free trade?
32. How do you determine if a rational economic
decision has been made?
33. What fiscal policy tools could be used to
expand the economy?
34. List three things microeconomics examines
and three things macroeconomics would
examine.
35. How are public goods and services in the U.S.
paid for?
36. What effect does deregulation have on an
industry?
37. The price of cars decreases slightly and the
demand for cars increases greatly. This is an
example of what?
38. What did NAFTA do in regard to trade
between the three countries?
39. What is the difference between a bank and a
credit union?
47. Low interest rates increased consumer
spending and borrowing. Which way does the
AD curve move?
48. Unemployment rising, GDP falling. What
phase of the business cycle is this economy in?
49. Why are salaries of some workers higher than
others?
50. What are some things that determine your
credit worthiness?
51. When the U.S. government hires postal
workers and FBI agents, it makes a transaction
in which market?
52. A printing company buys a new printing press.
What effect will this have on equilibrium price
and quantity?
53. What protects your money in a bank if the
bank goes out of business?
54. What is the best example of a price ceiling? A
price floor?
55. The market for gasoline is controlled by a few
large companies. What market is being
described?
56. What is the best example of a progressive tax?
40. Describe an investment in human capital.
41. Give an example of a government transfer
payment or government aid.
42. If the government places a maximum limit on
the price of gas, what is the result and what is
this called?
57. What is the disadvantage shared by sole
proprietorships and partnerships?
58. What does it mean when a country imports
more than it exports?
59. What tools of monetary policy would be used
to try to end a recession?
43. Draw a basic production possibilities curve.
Place a point on the drawing that would show
inefficient use of resources.
60. What tools of monetary policy would be used
to try and slow down an economy?
44. What is the relationship between debt and
deficit?
61. In a market economy, what determines how
goods and services are distributed?
45. The U.S. government forbids all imports from
Cuba. What is this an example of?
46. What makes a tax regressive?
Year
2006
2007
Value of 1 Euro
in U.S. Dollars
1.25
1.42
Value of $1 in
Euros
0.79
0.70
62. If you took $1,000 to Europe in 2007 and
exchanged it for Euros, how many Euros did
you receive?
63. Which currency appreciated in value from
2006 to 2007?
64. What type of insurance pays a monthly income
to people who are unable to work for an
extended period?
U.S.
Nicaragua
TOTAL
Sugar
80
70
150
Fertilizer
100
50
150
65. Who has the absolute advantage in sugar?
Fertilizer?
66. Who has the comparative advantage in sugar?
Fertilizer?
67. In the circular flow diagram, the flow of wages
to workers goes from _______________
through the _______________ market to
_________________.
68. What tools of monetary policy would be used
to contract the economy?
69. What tools of fiscal policy would be used to
contract the economy?
70. What tools of monetary policy would be used
to expand the economy?
71. What tools of fiscal policy would be used to
expand the economy?
72. Why does every economic decision involve an
opportunity cost?
73. Beads were once used as a medium of
exchange by Native Americans. Why was this
money used at one time?
74. A person who leaves their job to find another
job is experiencing what type of
unemployment?
75. Who prints the money and who controls the
supply of money?
76. Janice decides to spend $20 on a concert ticket
instead of a new blouse. What is the
opportunity cost of the decision?
77. What is the incentive for entrepreneurs in a
market economy?