Download Q1 Common Assessment Study Guide

Q1 Econ. Common Assessment Study Guide
Name ________________________
Per. _____ date ________________
1. (12.1) List & briefly describe the 4 factors of production. Pg.4
2-3. (12.1.1) What is the basic problem of economics? Explain it, and its consequences. Pg.8
4. (12.1.2) How do marginal cost & marginal benefit affect our economic decisions? Pg. 87 & 92
5. (12.1) What is utility and how does it influence our economic decisions?
6. (12.1.2) What is opportunity cost? Give an example, and explain how it affects our decisions? Pg. 11
7. (12.1.3) What are monetary incentives? Pg. 27
8. (12.1.3) Give an example of incentives, and explain how can they affect people’s behaviors?
9. (12.1.4) How does private property affect people’s behaviors in a market economy? Pg. 29-30 &
discussion
10. (12.1.5) Are most economic systems pure or mixed? Pg. 23
11-12. (12.1.5) What are the differences between command & market economic systems? How are the
3 mixed economic systems similar to, and different from, a command or market system? Pg. 25-28
13. (12.2.1) What is the relationship between price & quantity, according to the Law of Demand. Pg. 52
14-15. (12.2.1) What three economic concepts help explain the law of Demand, and how does each
work? Pg. 52-54
16. (12.2.1) What is the relationship between price & quantity according to the Law of Supply? Pg. 73-74
17. (12.2.2) What events or outside factors (determinants) can cause an increase or decrease in
demand? Pg. 56-62
18-19. (12.2.2) What events or outside factors (determinants) can cause an increase or decrease in
supply? Pg. 79-85
20. (12.2.2 & 12.2.4) How would the scarcity of a product affect its equilibrium price? Pg. 80 & 106-107
21. (12.2.3) What are the main features of the Free-Enterprise (Market) System? Pg. 29
22. (12.2.5) What happens among buyers & sellers when an equilibrium market price exists? Pg. 103-106
23. (12.2.6) Give some examples of price ceilings & price floors. Pg. 108-110
24-25. (12.2.6) How are surpluses & shortages related to price controls? Be able to recognize each
situation on a graph. Pg. 108-110
26-27. (12.2.8) According to Adam Smith: Pg. 26
a) What motivates producers?
b) How is self-interest related to the concept of the “invisible hand”?
28-29. (12.2) Draw a graph for a change in demand and another graph showing a change in the quantity
demanded. Explain the difference. Pg. 56 & 57
30. (12.2) What affect does a change in the price of a good have on its substitute good? (graph) Pg. 60
31. (12.2) What factors cause a good to have elastic, or inelastic, demand? Pg. 63-64
32. (12.2) What are some examples of positive and negative externalities? Pg. 101
33. (12.2) What are public goods? Give examples. Pg. 101-102
34. (12.2) What is the difference between variable and fixed costs? Provide examples. Pg. 91
35. (12.3.1) What are some examples of the government’s influence in a Free-Enterprise/Market
economy like the U.S.? Pg. 33
36. (12.3.1) Why does a capitalist government regulate businesses? For example, why do they prevent
monopolies from forming?
37. (12.3.1) Name 3 legal methods of price controls, and the main example of illegal price setting by
businesses?