Download EOCT Review Unit One - Mr. Zittle`s Classroom

EOCT Review Unit One
Chapters 1,2,3
Fundamental Economic Concepts
1.
What is Economics?
2.
What is Scarcity?
3.
What are the 4 factors of Production?
1.
2.
3.
4.
4.
What are the 3 basic questions of economics?
5.
What is the difference between consumer and producer goods?
6.
Explain the paradox of value.
7.
Define Utility-
8.
Draw and explain the Circular Flow of Economic Activity
9.
Define and explain the difference between trade-offs and opportunity costs.
10. Draw and explain a production possibilities curve/frontier.
11. How is cost-benefit analysis used in economic decision making?
12. Complete the chart
Economic System Traditional
Characteristics
Defination
Market
Command
Advantages
Disadvantages
Examples
13. List and explain the US 7 Economic and Social Goals
1
2
3
4
5
6
7
14. What are the five key Characteristics of Capitalism and Free Enterprise
1
2
3
4
5
16 What is the role of the Consumer, Government, and Entrepreneur in Capitalism?
17 Complete the chart
Sole Proprietorships Limited partnerships General partnerships
Definition
Corporations
Advantages
Disadvantages
18. What are the reasons a company would merge with another company?
19. What is the difference between a vertical and a horizontal merger and a conglomerate?
20. What is the purpose of the Chamber of Commerce?
21. List and describe the 3 different types of co-operatives.
22. How do labor and professional unions use collective bargaining?
Chapter 18
23. What problems to nations face when transitioning to capitalism?
24. How is Japanese capitalism different from American capitalism?
Economics EOCT Review
Unit 2 Ch. 4,5,6,7
Microeconomics
What is microeconomics?
What are the three criteria a person must meet in order to be in demand for a product?
What are the two ways demand can be illustrated?
Label the two illustrations below. Then use one to complete the other.
Price
1.00
2.00
3.00
4.00
5.00
6.00
QD
30
25
15
10
5
0
Explain the law of demand-
What is marginal utility? Explain the concept of diminishing marginal utility.
Illustrate the difference in a change in demand and a change in quantity demanded.
Explain how income effect and substitution effect will cause a change in quantity demanded.
Substitution Effect-
Income Effect-
What are the 6 determinates (factors) that will cause a change in demand.
What is demand elasticity?
Define and draw a demand curve to illustrate the following:
Elastic Demand
Inelastic Demand
Unit Elastic Demand
What are the three questions you can use to determine demand elasticity?
Explain the Law of supplyWhat are the two ways supply can be illustrated?
Label the two illustrations below. Then use one to complete the other.
Price
1.00
2.00
3.00
4.00
5.00
6.00
QS
0
5
15
20
30
40
What is the difference between a market supply curve and an individual supply curve?
Define and illustrate the difference between a change in supply and quantity supplied.
What are the 8 determinates (factors) that cause a change in supply?
Define and illustrate the following:
Elastic Supply
Inelastic Supply
Unit Elastic Supply
What are the questions that you would ask to determine elasticity of supply?
What is the theory of production?
What is the difference between the long and the short run?
Explain and illustrate the 3 Stages of Production
What is the difference between total and marginal product?
What is the difference between fixed and variable cost?
What is the difference between total and marginal cost?
Where are profits maximized?
What is the difference between total revenue and marginal revenue?
What are the advantages of having a price system?
What is rationing and what problems may occur under a rationing system?
Define and illustrate market equilibrium, surplus, shortage, equilibrium price, price floor, price ceiling-
Explain how the government aids the agriculture industry by stabilizing price and guaranteeing a specific
price level for their products.
Explain the phrase “Laissez-faire”What are the 5 conditions needed in order for a market to be perfectly competitive?
What is monopolistic competition? Why and how do producers use product differentiation and non-price
competition to try and gain an advantage in the market?
How might the few large firms in a oligopoly work together to control the market?
What are the different types of monopolies (4)
Are all monopolies bad for consumers? Explain
What is a market failure?
What are the 5 things that will cause markets to fail?
What are public goods?
How can externalities be positive and negative? Provide an example of each
What is price discrimination?
What is a cease and desist order and who would issue it?
What is a Trust?
What is public disclosure and what is its purpose?
What is Indirect Disclosure?
Why is it said that we in the USA have a modified Free enterprise economy
List a few examples of how our government regulates our economy.
How does our government try to internalize externalities?
EOCT Review
Unit 3 Macroeconomics: Institutions
Chapter 8
1. What is Macroeconomics?
2.
What is the civilian labor force?
3.
Define the following terms: Strike, Picket, Boycott, Lockout?
4.
What is the difference between mediation and arbitration?
5.
What are the 4 categories of labor?
6.
What is minimum wage?
7.
What is the difference between real and current dollars?
Chapter 9
8. What are the 4 different types of taxes? Define and Explain.
9. What is the IRS?
10. Define the following types of taxes: Estate, Excise, Gift, Luxury, Sin
11. What is a Flat tax?
Chapter 10
12. What is the private sector?
13. What are the two types of Government spending?
14. What is a transfer payment? What is grant in aid?
15. What are the three main impacts of government spending?
16. What is the difference between mandatory and discretionary spending?
17. What are the three largest spending categories within the federal budget?
18. What are intergovernmental expenditures?
19. What is deficit spending?
20. What is the difference between public and private debt?
21. What is a line item veto?
22. What are entitlements?
23. What are the three functions of money?
28. What are the four characteristics of money?
29. What is fiat money?
30. What is the Federal Reserve System?
31. What is the FDIC?
32. Describe each of the following: Savings Banks, Credit Unions, Savings and Loan Associations.
33. Explain the circular flow of funds on page 315.
34. What is a mutual fund?
35. What is a 401k?
36. Discuss the bond rating system.
37.What is the difference between a treasury bond and treasury note?
38.What is the NYSE?
39. What is the Dow-Jones Industrial Average?
40. What is the difference between a bear and a bull market?
41. Describe the different types of markets: futures, spot, option.
Economics EOCT Review
Unit 4 Macroeconomic Policies
Chapter 13
What is Gross Domestic Product?
What are the 4 main transactions not included in GDP?
What is Gross National Product?
What is not included in GNP?
What is inflation?
What is a price index? What are the main two price indexes? How do you construct a price index?
What is the difference in Real GDP and Current GDP?
How has the population of the United States changed over time?
What is per capita GDP?
What is standard of living?
Draw and label the different phases of the business cycle. Describe characteristics in each phase.
What are the five things that can cause the business cycle to change phases?
Who is considered to be unemployed?
How do you calculate unemployment rate? Who is left out?
What is full employment?
What are the five types of unemployment? Describe each.
What is inflation?
What is deflation?
What are the different degrees of inflation?
List the causes of inflation.
What are the main reasons for income inequality?
Discuss 6 different types of anti-poverty programs.
Describe the structure of the Federal Reserve. Include the Board of Governors, Federal Reserve District
Banks, FOMC, Advisory Committees, Member banks
What is monetary policy?
What is the difference between tight and easy money policies?
What are the 6 tools of monetary policy the FED can use? Describe how each is used in as part of a tight
and easy money policy.
What is stagflation?
What is misery index?
Explain aggregate demand and aggregate supply?
How do you find Macroeconomic equilibrium?
What is fiscal policy?
Explain the difference between Supply-side and Demand-side policies?
What is Keynesian Economics?
Unit 4 International Trade
What is the difference between absolute and comparative advantage?
What is the key to a nation having comparative advantage?
How does specialization affect world output?
Define a balance of trade.
Define a balance of payment.
What is the difference between the two balances above?
Define;
Tariff
Quota
Embargo
Subsidies
What is the difference between protectionism and free trade?
What are the benefits and costs of the trade policies above?
Identify the purpose and membership of the following trade blocs;
EU
NAFTA
ASEAN
What is meant by exchange rate?
What things affect a currency’s exchange rate?
When a nation’s currency appreciates, who benefits and who loses?
Use an exchange rate table (like below) to calculate the value of currency.
US
Japanese
British
Swiss
Canadian
Euro
Dollar
Yen
Pound
Franc
Dollar
1 US
Dollar =
1
Inverse:
1 Euro =
1.26780
Inverse:
0.78877
1 Japanese
Yen =
0.01087
Inverse:
0.78877
91.97000
0.68559
1.21820
1.29580
1.26780
0.01087
1.45860
0.82088
0.77172
116.91000
0.86660
1.53800
1.63540
0.00855
1.15393
0.65020
0.61147
0.00738
0.01297
0.01381
135.50136 77.10100
72.41130
1.75740
1.87048
0.56902
0.53462
1
0.00855
1
91.99632 116.95906
1 British
Pound =
1.45860
1.15393 135.44812
Inverse:
0.68559
0.86660
0.00738
1 Swiss
Franc =
0.82088
0.65020
77.07285
0.56902
Inverse:
1.21820
1.53799
0.01297
1.75741
1 Canadian
Dollar =
0.77172
0.61147
72.41371
0.53462
0.93955
Inverse:
1.29581
1.63540
0.01381
1.87049
1.06434
1
1
1.06434
0.93955
1
A meal that costs 3,000 Japanese Yen would cost ___________ in U.S. Dollars.
A BMW that costs 85,000 Euros would cost _____________ in U.S. Dollars.
To a Canadian tourist in the United States, a $9 movie ticket would be worth __________ Canadian dollars.
Unit 5 Personal Finance
What role do incentives play in rational economic decision-making when deciding answer to problems like;
Buy now or buy later? Put money in savings account or spend it? Go to college or get a job?
What services are offered by the different financial institutions?
What is the difference between a commercial bank, savings and loan association and a credit union?
What purpose does the FDIC serve?
How do banks make a profit?
What is the difference between interest charged and interest earned?
With investments, what is the relationship between risk and return?
Explain the difference between stock and bonds.
Rank the following investments from most risky to least risky. Savings account, government bonds,
corporate bonds, junk bonds, common stock.
What is a mutual fund? Compare and contrast this to purchasing stock.
Who benefits, and who loses from inflation?
Define progressive, regressive and proportional taxes.
How does a sales tax affect different income groups?
What factors affect a person’s credit?
What is the difference between simple and compound interest?
List types of insurance.
What costs and benefits are associated with the types of insurance?
What is an insurance premium?
Identify skills which are required to be successful in the workplace.
Why is investment in education, training and skill development important?