Download Chapter 10- Money and banking

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Economics Final Exam Review
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Chapter 1- What is Economics (pg. 3-18)
Define the following terms
1. Scarcity (pg. 4)2. Opportunity cost (pg. 9)3. Guns or butter (pg. 8)-
4. According to the Production possibilities curve above, if you produced 16 units of
Butter you could produce _________________ units of Guns. (pg. 14-18)
5. The Production of 18 units of Butter and 15 units of Guns is
_________________________. (pg. 14-18)
6. What are the 4 factors of production? Next to each factor give one example. (pg. 5)
a.
c.
b.
d.
7. How do companies that invest in their human capital benefit? (pg. 5)
8. Explain what is human capital, and how does it benefit society? (pg. 5)
Chapters 2 and 3 - Economic Systems (pg. 23-70)
1. The U.S. is ________________ system with features like private property, choice,
competition, economic incentives, and __________________________. (pg. 52)
2. Which feature allows business to challenge each other in order to win over customers,
which also benefits both workers and consumers? (pg. 52)
3. How is the government involved in the U.S. Capitalism system? (pg. 54)
4. Karl Marx is to the Command System as ____________________ as to the Market
System. (pg. 33)
5 .What do households purchase from business? (pg. 29-30)
6. Which two economic systems do not include private ownership, individual freedom,
and economic incentive? (pg. 26- 27, 34)
a.
b.
7. Who answer the three key economic questions in a Command system? (pg. 34)
8. Define public property or goods and give two examples. (pg. 62-63)
a.
b.
9. Why did John Maynard Kaynes want the government to intervene in the economy?
(pg. 315)
10) List and explain the three economic questions that every society must answer?
(pg.23)
ABC-
11) How is socialism different from communism? (pg.35)
Chapters 4,5, and 6- Supply and Demand (pgs. 78-147)
1. According to the law of demand, if price rises, consumers will purchase (pg. 79)
___________ quantity.
2. According to the law of supply, if price rises producers make (pg. 101)
_______________ of a product.
Use Pg. 126
3. The Equilibrium, price is _____________ and the quantity is _________.
4. How many goods or services are supplied at $2? How many are demanded at $2.00?
At the $ 2.00 there is __________________________.
5. How much is the shortage at $.50 _____________________.
6. Due to the benefit and medical research people begin to consume more fish and less
meat. This is an example of _____________________ effect. (pg. 80)
7. Circle the correct shift on the graph below after reading the following scenario
Scenario: Last year an Arctic freeze destroyed the orange crops in the U.S. (pg. 116)
Chapter 7- Market Structure (pg. 150-178)
1. What are the four market structures? Underline the market structure which best
identifies the competition faced between U.S. automobile manufacturers? Circle the
structure that has the least competition? (pg. 170)
a.
c.
b.
d.
2. Microsoft control over Windows operating system in the 1990s was an example of
which market structure? (pg. 165)
Chapter 8- Business Structures
1. What are the four business organizations? Underline the organization that produces the
highest revenue. (pg. 185, 190, 195, and 203)
a.
c.
b.
d.
2. Firms that wish to incorporate must first file for a state license known as a
_________________ (p.197)
3. If a company obtained a license from the government to operate with hazardous
materials such as chemicals what are they responsible for if a spill or an accident occurs
such as the BP oil rig incident in the Gulf of Mexico (pg. 187)?
A- Only the property they own
B- Any Property polluted by their operation
C- Only government Property
D- Only private property
4. List two disadvantages and advantages of a sole proprietorship (185-188)?
a.
b.
a.
b.
5. One advantage of Corporations is that they can sell ________________ and
_______________ to raise money (pg. 197).
6. Stockholders are the ___________ of corporations (pg. 195).
8. What are three type’s partnerships? Underline the partnership where all partners are
responsible if the business fails (p. 190)
a.
b.
c.
9. What is the major difference between a corporation and other business organizations?
(p.195)
Chapter 9- Labor
4. In the education and income figure on page 214, what are the 4 major college degrees?
a.
c.
b.
d.
5. What is the learning effect? (pg. 214)
6. What happened to unemployment following the 1929 stock market crash which was
one of the reasons for the start of the Great Depression (pg. 334)?
Chapter 10- Money and Banking
1. If someone is shopping to buy a birthday gift and they are comparing prices, this is
known as which of the three function of money. (pg.243-244)
2. List three things that give U.S. money value? (pg. 248)
3. How do banks or financial institutions make profit? (pg. 262)
4. What happens to consumers and business when banks raise rates? (pg. 430)
5. How would the economy be affected if Americans placed more money in their saving
account? Would it grow or shrink? Explain?
6. Which of the following bank account to people use only daily basis? (pg. 275)
A- Retirement account
B- Saving account
C- Checking account
D- CDs (certificate of deposit)
Turn to page 287, figure 11.7 Newspaper Stock Report to answer question 4-6.
4. Which stock increased in value the most during this day?
5. Which two stocks pay the same dividend?
a.
b.
6. What is the number of shares of Disney stock that were traded on this day?
7. Explain two things that can lower your credit score? (pg. 513)
Chapter 11- Investment
1. What type of investment is the riskiest but may offer the best return? (pg. 275)
A- Stocks
B- Saving account
C- U.S. saving bond
D- CDs (certificate of deposit)
2. Which of the following is the best loan if you are trying to buy a boat? (pg. 261-263)
A- payday loan
B- Credit card
C- Bank loan
D- Mortgage
3) What happens to the size of the economy if banks increase their ability to loan money
to businesses and individuals? (pg. 427)
Chapter 12 and 13- Gross Domestic Product and Growth
1. GDP (pg. 301)2. What is inflation and explain its effects on the purchasing power of a country’s
currency? (pg. 338)
3. Draw and label the 4 phases of a business cycle. (pg. 310-311)
Chapter 14- Taxes
1. What are the two limits on Congress power to tax? (pg.360)
Limit oneLimit two2. List and explain the three types of taxes on figure 14.1? (pg. 360)
a.
b.
c.
3. What are the four federal programs the government spends the most on? Figure 14.6
(p. 371)
a.
b.
c.
d.
4. What happens if the government increased spending and did not raise taxes? (pg. 390)
Chapter 16- The Federal Reserve
1. Which groups oversees the Federal Reserve System? (pg. 416)
2. Why does the FED use monetary policy? (pg. 417)
Chapter 17- International Trade
1. What is NAFTA? What is the main outcome of NAFTA? (pg. 452)
a.
b.
2. Why do American companies outsource jobs overseas? (pg. 454)
Financial Literacy
1) List two advantages and two disadvantages of buying a home or renting an apartment?
2) What is the different between Foreclosure and Eviction?
3) Why do some apartment complex businesses require tenants to buy renters insurance?
4) When you are unable to pay your debt, you are forced to file bankruptcy, which means
5) What are the three federal taxes that are automatically deducted from income?
6) What type of insurance covers your own automobile if the other driver is uninsured or
it is you own fault?