Download Review Guide for ECON Final 2016

Review Guide for ECON Final 2016
1. What is physical capital/human capital? ______________________________________________
2. What is the difference between a shortage and scarcity?
_____________________________________________________________________________
3. What is an entrepreneur? ___________________________________________________________
4. What is a shortage?/surplus _________________________________________________________
5. What are compliments? _____________________________________________________________
6. What is a production possibilities curve? _______________________________________________
7. What does a circular flow model of a market economy show? _______________________________
8. What is a main principle of Adam Smith’s The Wealth of Nations?____________________________
9. Which are the government’s three goals for promoting economic strength?
__________________________________________________________________________________
10. negative externality and positive externality__________________________________________________________________________________
11. Law of Supply______________________________________________________________________
12. Law of Demand ____________________________________________________________________
13. Public Goods_______________________________________________________________________
14. substitution effect__________________________________________________________________
15. Equilibrium________________________________________________________________________
16. Price Floor/Price Ceiling______________________________________________________________
17. Monopoly, Oligopoly, Monopolistic
Competition_______________________________________________________________________
_________________________________________________________________________________
18. Factors of
Production_______________________________________________________________________
19. Macro/Micro Economics_____________________________________________________________
20. Command, Market, Mixed, Traditional
Economies_________________________________________________________________________
__________________________________________________________________________________
21. voluntary exchange _________________________________________________________________
22. Social Security (tax)_________________________________________________________________
23. Medicare/Medicade_________________________________________________________________
24. Progressive, Proportional, Regressive
Tax______________________________________________________________________________
25. Guns or Butter______________________________________________________________________
26. Trade-Off, Opportunity Cost___________________________________________________________
27. Thinking on the margin_______________________________________________________________
28. Scarcity___________________________________________________________________________
29. “invisible Hand”____________________________________________________________________
30. Specialization______________________________________________________________________
31. In-Kind benefits ____________________________________________________________________
32. Free Loaders _______________________________________________________________________
33. Mandatory spending_______________________________________________________________
34. Discretionary spending ____________________________________________________________
35. GDP____________________________________________________________________________
36. Tarriffs__________________________________________________________________________
37. Factors that affect demand__________________________________________________________
38. Factors that affect supply_____________________________________________________________
39. Elastic/inelastic_____________________________________________________________________
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1. How does scarcity influence all economic decisions?
2. Why and how did the US economy become a “mixed economy”?
3. Other than price, what other factors influence demand?
4. Why is supply attracted by higher prices?
5. Is there an unequal distribution of wealth in the US? Why and can it be changed, Why?
6. What it money?
7. What are the three main market structures and why is it dangerous for monopolies to
be formed?
8. Describe the difference between the national debt and government deficits.
9. What factors the government’s taxing and spending decisions?
10. Compare and Contrast progressive, regressive, and proportional taxes.
11. What is the FED?
12. Why can’t people have as much as they want?
13. What is economics?
14. What is the FDIC?
15. What is rent control?
16. What is an example of a price floor?
17. What are pros and cons of raising minimum wage?
18. When did the welfare system begin?
19. What is the difference between a patent and a copyright?
20. What kind of economy is the USA?