Download File - Ms. Brown`s Economics Classes

Make-up work for Economics (Ms. Brown):
For every one grade of zero that you want to replace on homework assignments, you must complete two of the
following.
Please note that your work must be your own work, from your own brain and in your own words—you may not copy
from a book or the web, and you may not copy from a friend, classmate, or anyone else who is shifty enough to let you
copy from them. For sources you should consult your class notes, the text book or the EOCT review guide that is on my
website. All of these assignments require a minimum of two paragraphs, plus any necessary graphs.
1. Define scarcity as a basic condition that exists when unlimited wants exceed limited productive resources.
2. Define and give examples of productive resources (factors of production) (e.g., land (natural), labor (human),
capital (capital goods), entrepreneurship).
3. List a variety of strategies for allocating scarce resources.
4. Define opportunity cost as the next best alternative given up when individuals, businesses, and governments
confront scarcity by making choices.
5. Illustrate by means of a production possibilities curve the trade-offs between two options.
6. Explain that rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs.
7. Give examples of how individuals and businesses specialize.
8. Explain that both parties gain as a result of voluntary, non-fraudulent exchange.
9. Compare command, market, and mixed economic systems with regard to private ownership, profit motive,
consumer sovereignty, competition, and government regulation.
10. Evaluate how well each type of system answers the three economic questions and meets the broad social and
economic goals of freedom, security, equity, growth, efficiency, and stability.
11. Explain why government provides public goods and services, redistributes income, protects property rights, and
resolves market failures.
12. Give examples of government regulation and deregulation and their effects on consumers and producers.
13. Define productivity as the relationship of inputs to outputs.
14. Give illustrations of investment in equipment and technology and explain their relationship to economic growth.
15. Give examples of how investment in education can lead to a higher standard of living.
16. Illustrate by means of a circular flow diagram, the Product market; the Resource (factor) market; the real flow of
goods and services between and among businesses, households, and government; and the flow of money.
17. Explain the role of money as a medium of exchange and how it facilitates exchange.
18. Define the Law of Supply and the Law of Demand.
19. Describe the role of buyers and sellers in determining market clearing price.
20. Illustrate on a graph how supply and demand determine equilibrium price and quantity.
21. Explain how prices serve as incentives in a market economy.
22. Identify and illustrate on a graph factors that cause changes in market supply and demand.
23. Explain and illustrate on a graph how price floors create surpluses and price ceilings create shortages.
24. Define price elasticity of demand and supply.
25. Compare and contrast three forms of business organization—sole proprietorship, partnership, and corporation.
26. Explain the role of profit as an incentive for entrepreneurs.
27. Identify the basic characteristics of monopoly, oligopoly, monopolistic competition, and pure competition.
28. Explain that overall levels of income, employment, and prices are determined by the spending and production
decisions of households, businesses, government, and net exports.
29. Define Gross Domestic Product (GDP), economic growth, unemployment, Consumer Price Index (CPI), inflation,
stagflation, and aggregate supply and aggregate demand.
30. Explain how economic growth, inflation, and unemployment are calculated.
31. Identify structural, cyclical, and frictional unemployment.
32. Define the stages of the business cycle, include peak, contraction, trough, recovery, expansion as well as
recession and depression.
33. Describe the difference between the national debt and government deficits.
34. Describe the organization of the Federal Reserve System.
35. Define monetary policy.
36. Describe how the Federal Reserve uses the tools of monetary policy to promote price stability, full employment,
and economic growth.
37. Define fiscal policy.
38. Explain the government’s taxing and spending decisions.
39. Define and distinguish between absolute advantage and comparative advantage.
40. Explain that most trade takes place because of comparative advantage in the production of a good or service.
41. Explain the difference between balance of trade and balance of payments.
42. Define trade barriers as tariffs, quotas, embargoes, standards, and subsidies.
43. Identify costs and benefits of trade barriers over time.
44. List specific examples of trade barriers.
45. List specific examples of trading blocks such as the EU, NAFTA, and ASEAN.
46. Evaluate arguments for and against free trade.
47. Define exchange rate as the price of one nation’s currency in terms of another nation’s currency.
48. Locate information on exchange rates.
49. Interpret exchange rate tables.
50. Explain why, when exchange rates change, some groups benefit and others lose.
51. Explain that people respond to positive and negative incentives in predictable ways.
52. Use a rational decision making model to select one option over another.
53. Create a savings or financial investment plan for a future goal.
54. Compare services offered by different financial institutions.
55. Explain reasons for the spread between interest charged and interest earned.
56. Give examples of the direct relationship between risk and return.
57. Evaluate a variety of savings and investment options; include stocks, bonds, and mutual funds.
58. Give examples of who benefits and who loses from inflation.
59. Define progressive, regressive, and proportional taxes.
60. Explain how an increase in sales tax affects different income groups.
61. List factors that affect credit worthiness.
62. Compare interest rates on loans and credit cards from different institutions.
63. Explain the difference between simple and compound interest rates.
64. List various types of insurance such as automobile, health, life, disability, and property.
65. Explain the costs and benefits associated with different types of insurance; include deductibles, premiums,
shared liability, and asset protection.
66. Identify skills that are required to be successful in the workplace.
67. Explain the significance of investment in education, training, and skill development.
68. How does investment in human and physical capital affect productivity and economic growth?
69. How do we measure growth and productivity?
70. Why don’t people create all their own goods and services?
71. How does specialization by business and individuals lead to greater efficiency, lower prices, and increased
production?
72. How are buyers and sellers determined in the economy?
73. When do we engage in voluntary and involuntary exchange in the American economy?
74. How are households, business, and government interrelated through markets and the flow of money?
75. How are prices established in a market economy?
76. What forces lead to changes in supply and demand?
77. What factors affect the level of competition in various U.S. industries?
78. How do available substitutes, income, and time affect consumer responses to price changes?
79. How does the condition of scarcity affect producer decisions about production, capital investment, and
research/development?
80. What are the different roles does money plays in the U.S. economy?
81. Why do increases in market prices encourage producers to sell more goods and services?
82. How can the market structure of an industry influence the number of firms selling a product and the prices they
charge?
83. Why don’t people create all their own goods and services?
84. How does specialization by business and individuals lead to greater efficiency, lower prices, and increased
production?
85. How are buyers and sellers determined in the economy?
86. When do we engage in voluntary and involuntary exchange in the American economy?
87. How are households, business, and government interrelated through markets and the flow of money?
88. How are prices established in a market economy?
89. What forces lead to changes in supply and demand?
90. What factors affect the level of competition in various U.S. industries?
91. How do available substitutes, income, and time affect consumer responses to price changes?
92. How does the condition of scarcity affect producer decisions about production, capital investment, and
research/development?
93. What are the different roles does money plays in the U.S. economy?
94. Why do increases in market prices encourage producers to sell more goods and services?
95. How can the market structure of an industry influence the number of firms selling a product and the prices they
charge?
96. When the United States has a current account deficit, how is this offset in the financial account?
97. • How do trade barriers protect some within the economy and hurt others?
98. • When the dollar is weak compared to another nation’s currency, who gains and who loses?
99. How do changes in exchange rates reflect the condition of scarcity within a nation?
100.
How do a nation’s limited resources affect its decision to engage in international trade?
101.
What factors affect the supply of and demand for a nation’s currency?
102.
How would the elimination of agricultural subsidies change the incentives to produce certain crops?
103.
What benefits and costs are associated with free trade policies?
104.
Why do specialization and trade lead to increased efficiencies, production, consumption, and
satisfaction?
105.
How does the use of comparative advantage increase gains from trade for two or more nations?
In what ways have you personally benefitted from gains from trade?
106.
How do interest rates impact people’s saving and spending choices?
107.
How does investment in human capital affect an individual’s earning potential?
108.
How do insurers and the insured work together to manage risk?
109.
What incentives encourage individuals to manage risk through the purchase of insurance?
110.
When does the purchase of insurance represent involuntary exchange?
111.
How do interest rates provide an incentive to save?