Download Economics EOCT Review

Economics EOCT Review
Name: ____________________________
1. What are the characteristics of an expansion in the business cycle?
Date: ____________
2. What is GDP? What makes up GDP? How do you compute GDP?
3. What are the causes of inflation?
4. What is an opportunity cost?
5. What is cyclical unemployment?
6. What is structural unemployment?
7. What is frictional unemployment?
8. What is absolute advantage?
9. What is comparative advantage?
10. How do prices inform consumers and businesses?
11. If the Federal Reserve buys government securities (Bonds) what will happen to the money supply and
aggregate demand? If the FED sells Bonds?
12. What is a factor market?
13. What is a product market?
14. What are capital goods?
15. What are exchange rates?
16. What is a labor union?
17. What is collective bargaining?
18. If the supply of labor is limited what will happen to wages?
19. What is the FDIC?
20. An increase in demand for foreign exports will do what to the value of the U.S. dollar?
21. What is demand? What is supply? What is the law of demand? What is the law of supply?
22. What is elasticity?
23. What are the advantages and disadvantages to using credit?
24. How can a firm increase demand for its products?
25. What will happen to the value of money if the supply of money is increased?
26. What do Entrepreneurs do?
27. What is a market economy?
28. What is a command economy?
29. What is a traditional economy?
30. What is regional specialization?
31. How are public goods paid for in the United States?
32. Who would be helped by unanticipated inflation?
33. Who would be hurt by unanticipated inflation?
34. What is a progressive tax? Give an example of a progressive tax?
35. What is a regressive tax? Give an example of a regressive tax?
36. Create a supply and demand curve showing the effects of a price ceiling and a price floor.
37. What is the effect of a price ceiling? What is the effect of a price floor?
38. What is simple interest? What is compound interest?
39. If you had 3,000 in a savings account earning 5% compound interest yearly, how much money would you
have at the end of 3 years? If the savings account used simple interest what would be the final balance?
40. What is production possibilities curve?
41. How do market economies answer the three basic economic questions?
42. What are the three basic economic questions?
43. What is the fundamental economic problem?
44. How do command economies answer the three basic economic questions?
45. How do traditional economies answer the three basic economic questions?
46. What are the characteristics of an oligopoly?
47. What are the characteristics of a monopoly?
48. What are the characteristics of perfect competition?
49. What are the characteristics of monopolistic competition?
50. What is aggregate demand? What is aggregate supply?
51. What is NAFTA?
52. What is the EU?
53. What is the relationship of risk and return?
54. What is human capital?
55. Draw the diagram that shows the circular flow of economic activity including government, households, and
businesses.
56. What is scarcity?
57. Create a supply and demand curve with 5 prices for 20oz drinks at QT.
58. What will happen to the price if supply increases? If supply decreases?
59. What will happen to the price if demand increases? If demand decreases?
60. What is the substitution effect?
61. What is marginal utility?
62. What is an externality?
63. What are three major ways that the Federal Reserve can increase the money supply?
64. What are four characteristics of money?
65. What is an Investment Retirement Account (IRA)?
66. What is a Bond? What are stocks?
67. What is a want? What is a need?
68. What are the four factors of production? What are payments to each of the factors of production?
69. What is specialization? Why do people specialize?
70. What is an opportunity cost?
71. Use the following information to create two production possibilities curves.
Oranges
Apples
United States
100
200
Ecuador
50
75
72. Using the graph from 71, what is the opportunity cost of producing apples for both the U.S. and Ecuador?
73. Using the above graph, what country has the absolute advantage in the production of apples? Oranges?
74. What country has the comparative advantage in the production of apples? Oranges?
75. What are the advantages and disadvantages to government regulation of businesses and consumers?
76. What is productivity? What is standard of living?
77. What is a trade off?
78. What are the advantages and disadvantages of a corporation?
79. What are the advantages and disadvantages of a sole proprietorship?
80. What are the advantages and disadvantages of a partnership?
81. What is profit motive?
82. What is elasticity of demand? What is elasticity of supply?
83. What would happen to price level and real GDP if aggregate demand increases? If aggregate demand
decreases? If aggregate supply increases? If aggregate supply decreases?
84. What is the consumer price index? How is the consumer price index calculated?
85. What is a recession?
86. What are the stages of the business cycle?
87. What is the national debt? What are government deficits? What is the difference between them?
88. What is the job of the Federal Open Market Committee?
89. What are the functions of the Federal Reserve System?
90. How can fiscal policy be used to combat inflation? How can fiscal policy be used to combat a recession?
91. What are the advantages and disadvantages to having government provide goods and services?
92. What are government transfer payments?
93. What is the balance of trade?
94. What is the balance of payments?
95. What is a tariff? What is a quota? What is an embargo? What are subsidies?
96. What are some arguments for protectionism?
97. What is a mutual fund?
98. How are interest rates on loans determined?
99. What is fiscal policy?
100. What is monetary policy?