Download Bootcamp Review Worksheet

ECONOMICS
END OF COURSE TEST REVIEW
THE SLIDE NUMBERS SHOW YOU WHERE TO LOOK TO ANSWER EACH QUESTION
Unit 1: Basic Economic Concepts
1. What two factors combine to cause scarcity? (SLIDE 3) __________________________________________
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2. Define “Opportunity Cost” (SLIDE 4) ________________________________________________________
3. Define “Tradeoffs.” (SLIDE 4) ______________________________________________________________
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4. What is the difference between “Opportunity Cost” and “Tradeoffs”? (SLIDE 5) _______________________
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5. List the four productive resources and give an example of each. (SLIDES 6, 7, 8, and 9) _________________
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6. What are the three basic questions in Economics? (SLIDE 10) _____________________________________
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7. What are Marginal Benefits? (SLIDE 11) ______________________________________________________
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8. What are Marginal Costs? (SLIDE 11) ________________________________________________________
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9. How do you use the concepts of Marginal Benefits and Marginal Cost to make a decision? (SLIDE 12) _____
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10. Draw a production possibilities curve. (SLIDE 13)
11. Explain the significance of this curve and what it tells us about opportunity cost. (SLIDE 13) ____________
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12. Give an example of specialization in the workplace. (SLIDE 14) __________________________________
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13. What is meant by “voluntary, non-fraudulent exchange”? (SLIDE 15) ______________________________
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14. How does a Traditional Economy answer the basic economic questions? (SLIDE 16) __________________
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15. How does a Command Economy answer the basic economic questions? (SLIDE 17) ___________________
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16. How does a Market Economy answer the basic economic questions? (SLIDE 18) _____________________
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17. Which economic system has the most government regulation? (SLIDE 19) __________________________
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18. Which economic system has the least government regulation? (SLIDE 19) ___________________________
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Explain the following:
19. Economic Freedom (SLIDE 20) ____________________________________________________________
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20. Economic Security (SLIDE 21) _____________________________________________________________
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21. Economic Equity (SLIDE 22) ______________________________________________________________
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22. Economic Growth (SLIDE 23) _____________________________________________________________
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23. Economic Efficiency (SLIDE 24) ___________________________________________________________
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24. Economic Stability (SLIDE 25) _____________________________________________________________
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25. What is a public good or service? (SLIDE 26) _________________________________________________
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26. Why does the government provide public goods and services? (SLIDE 26) __________________________
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27. How does the government redistribute income? (SLIDE 27) ______________________________________
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28. How does the government protect property rights? (SLIDE 28) ____________________________________
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29. How does the government resolve market failures? (SLIDE 29) ___________________________________
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30. How does government regulation affect consumers and producers? Give examples. (SLIDE 30) __________
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31. Define “Productivity.” (SLIDE 31) __________________________________________________________
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32. How does an investment and equipment or technology increase economic growth? (SLIDE 32) __________
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33. Give three examples of investment in human capital. (SLIDE 33) __________________________________
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34. How does this investment lead to economic growth? (SLIDE 33) __________________________________
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35. Draw circular flow of the economy. Include four nodes and explain which way money flows. (SLIDE 34)
36. How does money serve as a medium of exchange? (SLIDE 35) ____________________________________
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Unit 2 - Microeconomics
37. Explain the “Law of Supply.” (SLIDE 36) ____________________________________________________
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38. Explain the “Law of Demand.” (SLIDE 37) ___________________________________________________
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39. How do buyers and sellers determine the market clearing price? (SLIDE 38) _________________________
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40. Draw a supply curve and demand curve. Show the equilibrium point. (SLIDE 39)
41. How do prices serve as incentives in a market economy? (SLIDE 40) _______________________________
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42. List the six determinates of demand. (SLIDE 41) _______________________________________________
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43. What factors can affect the supply curve? (SLIDE 42) ___________________________________________
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44. Draw a supply and demand curve. Show a price ceiling. (SLIDE 43)
45. What effect does a price ceiling have on the graph? Why? (SLIDE 43) _____________________________
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46. Draw a supply and demand curve. Show a price floor. (SLIDE 44)
47. What effect does this have on the graph? Why? (SLIDE 44) ______________________________________
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48. Define price elasticity. (SLIDE 45) __________________________________________________________
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49. When demand is elastic, what effect does a small change in price have? (SLIDE 46) ___________________
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50. When demand is inelastic, what effect does a small change in price have? (SLIDE 47) _________________
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51. Give an advantage and disadvantage of each of the following:
Sole proprietorship (SLIDE 48) ________________________________________________________________
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Partnership (SLIDE 49) ______________________________________________________________________
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Corporation (SLIDE 50) _____________________________________________________________________
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52. What is the purpose of business? (SLIDE 51) __________________________________________________
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53. What are the five characteristics of pure competition? (SLIDE 52) _________________________________
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54. Which of the five characteristics of pure competition is absent in monopolistic completion? (SLIDE 53) ___
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55. Define Oligopoly (SLIDE 54) ______________________________________________________________
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56. Define Monopoly (SLIDE 55) ______________________________________________________________
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57. What is the equation for GDP? What do each of the components stand for? (SLIDE 56) ________________
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58. Define Gross Domestic Product (SLIDE 57) ___________________________________________________
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59. Define Economic Growth (SLIDE 58) _______________________________________________________
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60. Define Unemployment (SLIDE 59) __________________________________________________________
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61. Define Consumer Price Index (SLIDE 60) ____________________________________________________
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62. Define Inflation (SLIDE 61) _______________________________________________________________
63. Define Stagflation (SLIDE 62) _____________________________________________________________
64. Define Aggregate Supply (SLIDE 63) ________________________________________________________
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65. Define Aggregate Demand (SLIDE 64) ______________________________________________________
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66. How is economic growth calculated? (SLIDE 65) ______________________________________________
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67. How is inflation calculated? (SLIDE 66) ______________________________________________________
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68. How is unemployment calculated? (SLIDE 67) ________________________________________________
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69. Define Structural Unemployment (SLIDE 68) _________________________________________________
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70. Define Cyclical Unemployment (SLIDE 69) __________________________________________________
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71. Define Frictional Unemployment (SLIDE 70) _________________________________________________
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72. What are the four stages of the business cycle? (SLIDE 71) _______________________________________
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73. Define Recession (SLIDE 72) ______________________________________________________________
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74. What is a deficit? (SLIDE 73) ______________________________________________________________
75. How does this differ from the national debt? (SLIDE 74) _________________________________________
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76. Explain the organization of the Federal Reserve System. (SLIDE 75) _______________________________
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77. Define Monetary Policy (SLIDE 76) _________________________________________________________
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78. What are the three major tools of monetary policy that the Federal Reserve uses? (SLIDE 77) ___________
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79. Define Fiscal Policy (SLIDE 78) ____________________________________________________________
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80. How do the legislative and executive branches use fiscal policy to regulate the economy? (SLIDE 79) _____
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81. Define Comparative Advantage (SLIDE 80) ___________________________________________________
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82. Define Absolute Advantage (SLIDE 81) ______________________________________________________
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83. Explain the difference between balance of trade and balance of record. (SLIDE 82) ____________________
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84. Define Tariffs (SLIDE 83) _________________________________________________________________
85. Define Quotas (SLIDE 84) ________________________________________________________________
86. Define Embargo (SLIDE 84) _______________________________________________________________
87. How does the government use standards as a trade barrier? (SLIDE 84) _____________________________
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88. How does the government use subsidies as a trade barrier? (SLIDE 85) _____________________________
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89. What are the costs and benefits of trade barriers? (SLIDE 86) _____________________________________
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90. In what part of the world is the EU based? (SLIDE 87) __________________________________________
91. In what part of the world is NAFTA based? (SLIDE 88) _________________________________________
92. In what part of the world is ASEAN based? (SLIDE 89) _________________________________________
93. Give one argument for and one argument against free trade. (SLIDE 90) ____________________________
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94. How does supply and demand determine exchange rates between national currencies? (SLIDE 91) _______
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95. How does the appreciation of the U.S. Dollar in terms of the British Pound Sterling affect trade between
these countries? (SLIDE 92) __________________________________________________________________
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96. Explain the difference between a bank and a credit union? (SLIDE 93) ______________________________
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97. How does increasing risk in investment relate to potential rewards from that investment? (SLIDE 94) _____
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98. Who benefits from inflation? Who loses? Why? (SLIDE 95) ______________________________________
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99. Define and give an example of each of the following: (SLIDE 96)
Progressive Tax: ____________________________________________________________________________
Proportional Tax: ___________________________________________________________________________
Regressive Tax: ____________________________________________________________________________
100. How does increasing sales tax affect the poor? (SLIDE 97) ______________________________________
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101. List the four “Cs” of credit and explain each. (SLIDE 98) _______________________________________
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102. What is simple interest? (SLIDE 99) ________________________________________________________
103. What is compound interest? (SLIDE 100) ____________________________________________________
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104. Define Insurance Deductibles (SLIDE 101) __________________________________________________
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105. Define Insurance Premiums (SLIDE 102) ____________________________________________________
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