Download Economics Final Exam review 1. Explain the difference between

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Economics Final Exam review
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Explain the difference between shortage and scarcity. Give an example of each.
What are capital goods? Give an example.
What are the factors of production?
Explain economic efficiency.
Why are all goods and services scarce?
Explain the difference between trade- offs and opportunity cost. Give an example of each.
What does “guns or butter” refer to?
What makes someone an entrepreneur?
Explain the difference between a market, centrally planned and traditional.
What types of economies would China and France have?
What is the struggle among producers called?
What are the 3 key economic questions that all countries must ask?
Why do producers produce?
Karl Marx and Adam Smith had different views about the role of government in our economy. Explain each
view.
What is the purpose of an economic system?
What is the most effective way for consumers to make their desires known to businesses?
What are disclosure laws and why are they important?
Explain the difference between a positive and negative externality. Give an example of each.
What are public goods? Give an example.
Explain Social Security, Medicare, and FICA.
What is the law of supply and demand?
What is the most important determinant of supply and demand?
What are other determinants of supply?
What are other determinants of demand?
Who are free riders?
What determines the price of most goods?
Explain the difference between elastic and inelastic demand. Give an example of each.
What occurs when buyers buy exactly the amount produced?
What is a natural monopoly? Give an example.
What types of monopolies does the government generally permit?
Explain non-price competition. Give an example.
Name and explain the 4 types of market structures.
Name and explain the 4 types of business organizations.
What is a merger? Name and explain the 3 types of mergers. Provide an example of each.
Why does the government sometimes give monopoly power to a company by issuing a patent?
What is a fringe benefit? Give an example.
Explain the difference between limited and unlimited liability.
Explain cooperatives and non-profit organizations.
What is GDP? What is counted and what is not counted?
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Explain the difference between durable and nondurable goods. Give an example of each.
Explain the CPI. What is counted?
Name and explain the three types of unemployment.
Explain the difference between cost push and demand pull inflation.
Why does the federal government collect taxes as we earn?
What is an entitlement? Give an example.
What is a tax? Name the sources of revenue and expenditures for each level of government.
What is the federal budget and how often is it put together?
Explain the difference between expansionary and contractionary fiscal policy.
What is a U.S. Savings Bond?
Define interest rate.
How many Federal Reserve Districts are there?
How could the Fed encourage banks to lend out more money?
Explain the difference between a trade surplus and a trade deficit.
Who is the largest U.S. trading partner?
Explain NAFTA and the EU, and the World Trade Organization.
Which country is the largest exporter of services?
What is specialization?
Draw and label a business cycle
Do protectionist policies hurt or help countries? Explain.
Explain the difference between a developed country and a developing country.
What is the purpose of a PPC?
What are assets?
What is disposable income?
What is the natural rate of unemployment?
What does it mean to be underemployed and what are discouraged workers?
Explain the difference between easy and tight monetary policy. What are the tools for each?
What is the purpose of a credit score?
What is the difference between a deficit and a debt?