Download Economics Study Guide

Economics Study Guide
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Ceteris paribus
Macroeconomics
Microeconomics
Economics
Shortage
Renewable resources
Nonrenewable resources
Traditional
Market
Command
Factors of production
Invisible hand
Division of labor
Absolute advantage
Dialectic
Thesis
Antithesis
Capitalism
Socialist
Das Capital
General Theory
Wealth of Nations
Deficit spending
Multiplier
Pump priming
Elastic
Inelastic
Elasticity
Complementary good
Law of Supply
Law of Diminishing Returns
Law of Demand
Utility
Real income
Substitution effect
Diminishing Marginal Utility
Determinants of elasticity
Determinants of demand
Determinants of supply
GDP
Disposable Income
Natural monopolies
Geographic monopolies
Technological monopolies
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Government monopolies
Interlocking directorate
Horizontal integration
Vertical integration
Conglomerate
Liquidity
M1
M2
Fed Funds
Prime rate
Stagflation
Loose and tight money policies
Full employment
Opportunity cost
Leading indicators
Adam Smith
Karl Marx
John Maynard Keynes
Ricardo
Malthus
Monopolistic competition
Perfect competition
Monopoly
Oligopoly
Progressive tax
Medicare
Medicaid
Regressive tax
Cost push inflation
Proportional tax
Demand pull inflation
Structural
Frictional
Seasonal
Cyclical
Comparative advantage
Absolute advantage
Protective tariff
Import quota
Embargo
Currency exchange
Reserve Ratio
Discount Rate
Open Market Operations
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Current and financial accounts
Balance of Trade
Surplus/deficit
Net exports
Appreciation
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Depreciation
NAFTA
WTO
Be able to demonstrate how changes in interest rates have an impact throughout the
economy
Be able to demonstrate how changes in fiscal policy have an impact throughout the economy
Be able to demonstrate how imports and exports impact the balance of payments
Be able to demonstrate
Be able to draw and label graphs with supply and demand curves and be able to shift curves
based on different scenarios
Be able to draw and identify elastic and inelastic curves
Essays
A. Explain why considering opportunity cost would give a person a better understanding of the
true cost of a decision. Provide an example that illustrates how the concept of opportunity
cost helps a person to make a better decision. (Do not use an example of college)
B. Evaluate the extent to which the United States should pursue free trade and support
globalization.
C. Assume that you are a person who produces and sells t-shirts. The market structure for this
industry would be considered monopolistic competition. Provide a step by step plan
explaining how you could improve market share. Be sure to use specific vocabulary.
D. Assume the United States was in a period of extreme stagflation. What would you
recommend for a solution? Explain why this would be the best solution, but also explain the
negative impact your decision would probably have.