Download Economics Exam Review Sheet

Economics Exam Review Sheet
Unit I – Chapter 1 - 3
Opportunity Cost/choices/trade offs
Scarcity and its causes
Factors of production (4 factors)
Entrepreneur – role and function
Goods and services
Factor payments
Circular flow
Economic systems: types (centrally planned, traditional and market) and
advantages/disadvantages of each system
self-interest and incentives
invisible hand and Adam Smith (Wealth of Nations) and laissez faire
private property rights/voluntary exchange/competition
government role in positive and negative externalities
public goods
Unit II – Chapters 4-7
Demand/law of demand/demand schedule/demand curve
Supply/law of supply/supply schedule/supply curve
Change in demand versus change in quantity demand
Change in supply versus change in quantity supplied
Causes shifting demand
Causes shifting supply
Elastic demand and supply
Inelastic demand and supply
complementary and substitute products
Fixed and variable costs in production
Market equilibrium price and quantity
Shortages (excess demand) and surpluses (excess supply)
Price ceilings and floors (minimum wage and rent control)
Government subsidies
Types of market structures (perfect competition, monopoly, monopolistic
competition and oligopoly) and number of companies involved, barriers
to entry into the industry, and role in determining prices
Unit III – Business and Labor Chapters Chapter 8-9
business organizations: (sole proprietorship, partnership – two types and corporationsunlimited liability/limited liability
stock / stock split
horizontal and vertical mergers
conglomerate
unemployment and the labor force
educations and the learning and screening effects
contingent employment
fringe benefits
types of skill levels (4)
Equal Pay Act 1963
Civil Rights Act 1964
Right to Work Law
Labor Unions, collective bargaining, strike, mediation and arbitration
Open opportunity
OSHA, FDA, EPA, EEOC
Sherman Antitrust law
Unit IV – Money/Banking Chapter 10-11
Three uses of money
Currency
Types of money including commodity money, fiat money, and representative money
Investment and savings vehicles including but not limited to mutual funds, CD, stocks (equities),
Roth IRA, bonds, savings bond
Components of bonds: principal, coupon, maturity
credit card vs. debit cards
FDIC
budgeting including income/expenses and fixed v. flexible expenses
interest
Different types of stocks: income stock, growth stock, blue chip stock and differences
between preferred and common stock
SEC
creditor
stockbroker
New York Stock Exchange and other exchanges
Dow Jones, Standard and Poor
bull/bear market
Unit V – Measuring Economic Growth Chapters 12-14
GDP and theory of national accounting: expenditure approach vs. income approach
cost push theory
demand pull theory
Productivity
Bureau of Labor Statistics
Four types of unemployment
unemployment rate
Inflation and recession: causes and rates
four business cycles
contraction and expansion
Taxes : progressive, proportional, regressive taxes, the IRS, 7.65 solution, social security / FICA
gift, property, estate, excise, medicaid, medicare
Unit VI – Fiscal/Monetary Policy Chapters 15-16
Functions and structure of the FED
BOG
quantity theory
Great Depression
contractionary and expansionary policy
Federal Reserve Act 1913 and the FED
Great Depression 1929
First Bank of U.S.
Federal notes
Fiscal vs. monetary policy