Download Economics with Emphasis on the Free Enterprise System and Its

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Economics with Emphasis on the Free Enterprise System
and Its Benefits
Credit by Exam Study Guide
This Credit by Exam Study Guide can help you prepare for the exam by giving you an idea of
what you need to study, review, and learn. To succeed, you should be thoroughly familiar with
the subject matter before you attempt to take the exam.
Every question that appears on the Credit by Exam/Examination for Acceleration is grounded in
the knowledge and skills statements and student expectations within the state-mandated
standards, the Texas Essential Knowledge and Skills (TEKS). It should be noted that the exam
will not test every student expectation. However, it is important that students study and know
the entire scope of the TEKS so that they can develop a complete understanding of the content.
The CBE/EAs are global exams grounded in the TEKS and are not designed to be a final exam
for the University of Texas high school courses. You can view the TEKS for this exam online at
http://www.tea.state.tx.us/teks/. Since questions are not taken from any one source, you can
prepare by reviewing any of the state-adopted textbooks.
About the Exam
The Credit by Exam consists of 50 multiple choice questions that are worth two points each. You
will be allowed 3 hours to take the exam.
Concepts and Objectives
The lists and sample questions below may not refer to all the material that will be on the exam.
These lists only provide additional information for some of the student expectations tested in the
Economics with Emphasis on the Free Enterprise System and Its Benefits. Ultimately, you
should use the TEKS to guide your exam preparation.
Know what is meant by each of the following concepts:
Absolute Advantage
Change in Demand
Appreciated Dollar
Change in Quantity Supplied
Arbitration
Change in Quantity Demanded
Balance of Trade
Change in Supply
Bankruptcy
Circular Flow Model
Barriers to Entry
Contractionary Fiscal Policy
Barter
Contractionary Monetary Policy
Bear Market
Collective Bargaining
Bonds
Collusion
Bull Market
Commodity Money
Capital Flight
Communism
Capital Markets
Comparative Advantage
Capitalism
Competition
Categories of Labor
Conglomerate
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ECO FE 09246
Study Guide
Consumer Cooperative
Consumer Price Index
Corporation
Credit Cards
Credit Score
Currency
Debit Cards
Debt
Deficit
Demand
Demand Curve
Depreciated Dollar
Developed Country
Developing Country
Discount Rate
Double Counting
Economics
Economic Freedom
Economic Goals
Economic System
Economies of Scale
Effective Tax
Effects of Trade Barriers
Elasticity of Demand
Elasticity of Supply
Equilibrium Price
Exchange Rates
Expansionary Fiscal Policy
Expansionary Monetary Policy
Expenditures Approach to GDP
Export
Factors of Production
Federal Reserve
Federal Funds Rate Target
Fiat Money
Financial Markets
Financial System
Fiscal Policy
Fixed Cost
Formula for Inflation
Franchise
Free Banking Era
Free Enterprise
Free Market
Free Trade
Free Trade Agreements
Full Employment
GDP
General Partnership
Geographic Monopoly
Gold Standard
Gross Domestic Product
Guns or Butter
Horizontal Merger
Import
Incentives
Income Approach to GDP
Industrial Union
Inflation
Internal Financing
International Monetary Fund (IMF)
Invisible Hand
Labor Union
Law of Demand
Law of Increasing Opportunity Costs
Law of Supply
Limited Partnership
Market Equilibrium
Marginal Cost
Marginal Revenue
Mediation
Merger
Minimum Wage
Money Multiplier
Monetary Policy Lags
Monetary Policy
Monopoly
Monopolistic Competition
Multinationals
Mutual Fund
Natural Rate of Population Increase
Nominal Wages
Nonprofit Organizations
Opportunity Cost
Oligopoly
Open Market Operations
Partnership
Per Capita Real GDP
Perfect Competition
Pension Funds
Poverty Rate
Price Ceiling
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K-16 Education Center
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ECO FE 09246
Study Guide
Price Floor
Private Property Rights
Problems with Fiscal Policy
Problems with Rationing
Production Possibilities Curve
Profit Motive
Property Rights
Pure Competition
Real Wages
Recession
Representative Money
Reserve Requirements
Responsive Prices
Retirement Plans
Role of Government in Market Economy
Shortage
Six Characteristics of Money
Sources of Federal Revenue
Specialization
Socialism
Sole Proprietorship
Stages of Development
Stocks
Strike
Supply
Surplus
Technological Monopolies
Theory of Production
Three Basic Types of Taxes
Three Functions of Money
Tools of Monetary Policy
Total Cost
Total Expenditures (Revenue) Test
Total Revenue
Trade Agreements
Trade Barriers
Trade Deficit
Trade-Offs
Trade Surplus
Two Basic Principles of Taxation
Types of Unemployment
Underutilizing
Unemployment Rate
Variable Cost
Wildcat Bank
World Bank
Know the main ideas associated with each of these economic philosophers:
Friedrich Hayek
Milton Friedman
John Maynard Keynes
Adam Smith
The University of Texas at Austin, Continuing & Innovative Education
K-16 Education Center
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ECO FE 09246
Study Guide
Sample Questions
These sample questions will give you a better idea of the types of questions you can expect on
the Credit by Exam. These are provided to illustrate the format of the exam. They are not the
actual exam. In order to be successful on the exam, you must study the TEKS and all of the
concepts previously listed.
Multiple Choice Questions
1. What do we call it when members of an oligopoly set prices and production levels?
A. Collusion
B. Pricing
C. Targeting
D. Coercion
2. What do we call a market that is used for buying and selling stocks?
A. Brokerage market
B. Stock exchange
C. Stock store
D. Bond exchange
3. What do we call a loan that is used to buy a house?
A.
B.
C.
D.
Mortgage
IOU
Premium
Tuition
4. What is another name for the free enterprise system?
A.
B.
C.
D.
Communism
Socialism
Capitalism
Liberalism
Answer Key
Item Number
1
2
3
4
Correct Answer
A
B
A
C
TEKS expectation
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$%&
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5D
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