Download ---PROMINENT TOPICS WORTH REVIEWING--

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---PROMINENT TOPICS WORTH REVIEWING--Chapter 1 - Fundamental Economic Concepts
o Scarcity
o 3 production questions
o Factors of production
o Specialization
o Utility
 Diminishing marginal utility
o Opportunity cost
o Production possibilities frontier
o Circular Flow
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Chapter 2 - Economic Systems
o Traditional, Command, Market, Mixed-Market
 Advantages and Disadvantages
o Communism vs. Capitalism
o 5 roles of Government in Mixed-Market
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Chapter 4 - Demand
o Law of Demand
o Demand Curves
o 7 Reasons for change in demand
o Elasticity of Demand
 3 factors
 Total Revenue Test
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Chapter 5 - Supply
o Law of Supply
o Supply Curves
o 7 Reasons for change in supply
o Elasticity of Supply
 3 factors
 3 time periods
o Profit maximization
 3 stages of production
 MR=MC
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Chapter 6 - Market Clearing
o Equilibrium price and quantity
 Using table
 Using graph
o Surplus and Shortage
o Shifts in supply, Demand, or both
o Price floors and ceilings
o GRAPHS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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Chapter 3 - Business Organizations
o Sole Proprietorships, Partnerships, Corporations
 Advantages, Disadvantages of each
 Corporate Structure
 Initial Public Offering
o Business Expansion
 Mergers, conglomerates, multinationals
o Cooperatives, Associations, and Unions
 Are unions good or bad?
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Chapter 19 - Personal Financial Literacy
o Budgeting
o Wealth Accumulation
 Saving and Investing
 Safety, Rate of Return, Liquidity
 Various options
 Rule of 72
o Job Market and Education
 Growing/Shrinking job markets
 Return on Investment of college
 Top earning majors
o Credit
 Types of credit
 Approval for Credit
 Credit Cards
 How they work
 Advantages
 Disadvantages
Some questions to answer…
1. Describe the circular flow of the economy. What types of activities make the economy grow? What types make
the economy shrink? What role, if any, does the government play in the circular flow?
2. Describe elasticity as it applies to both supply and demand. How is elasticity different than the price effect?
Describe what factors might affect the elasticity of supply. Do the same for elasticity of demand. Use examples if
necessary.
3. As we know, scarcity depends on both the available supply of a good or service and the demand for it. Choose a
good or service and briefly describe a circumstance in which it would be seen as scarce and one in which it would
not be scarce. Make sure that you follow the definition of scarcity in your explanation.
4. Using a table (not a graph) show me whether or not the classroom demand for widgets is elastic or inelastic. At
$5 each, students will buy a total of 30 widgets. At $10 they will buy 20 and at $15 they will buy 15. Students will
buy 12 widgets at $20 each and 10 at $25 a piece.
5. List and briefly describe five (7) of the seven main causes for a shift or change in demand and three (7) causes
for a shift or change in supply.
6. What are the three factors of production? Explain how changes in the cost of these factors can cause the supply
of that good or service to shift. Be sure to describe a circumstance in which supply could increase and a
circumstance in which supply could decrease.
7. Briefly describe the difference between a command, traditional, and mixed market economy and list an example
in the world of each.
8. Discuss the considerations that investors must take into account when deciding where/how to save or invest. How
would you prioritize these considerations? Given your priorities, describe one investment option that you would
definitely consider and one that you definitely would not.
9. List and describe 3 potential advantages and 2 potential disadvantages of owning and using a credit card.