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Study Guide: Economics this is fun!!
How has the Constitution Shaped the Economic System in the United States?
Give an example of each:
Labor resource:
Natural resource:
Capital resource:
The Constitution is a political document as well what type of document?
When it comes to self-interest, consumers, entrepreneurs, workers, and property owners all want to
maximize their personal interest. What does each want?
ConsumersEntrepreneursWorkersProperty owners-
How many wants does a person have?
Give and example of economic rivalry and explain why it is a rivalry
List the six characteristics of a market economy and be able to give a brief description
What is Economics?
Define these terms:
Economics:
Production:
Profit:
Resource:
Scarcity:
Wants:
What is the basic economic problem?
What are the 4 reasons why wants and needs are virtually unlimited?
Economic Choices
Define these terms:
Producer:
Consumer:
Allocating:
Investor:
Disposable Income:
Fixed Expenses:
Variable Expenses:
Opportunity Cost:
Give an example of a variable expense:
Give an example of a fixed expense:
Focus on the Factors of Production
List the 5 factors of production and define each:
Examining the Factors of Production
What is the most common material resource?
What is the most common human resource?
What material is needed to make resources productive?
Land is a nonrenewable resource, how is this true and how can to argue this statement?
Give an example of an entrepreneurship:
Economy of One
Define the following:
Worker-
Globalization-
Think about the five roles that we play in the economy. Define each role and then write the public policy
about banned handheld cell phone use in cars. How are the 5 roles impacted by this policy? Explain the
pros and cons (positives/negatives) about each role and how this policy impacts us as individuals in each of
the five roles:
Economics Tax
Define the following:
Taxes-
Proportional tax-
Give an example of proportional tax:
What does flat mean?
Progressive tax-
Give an example of progressive tax:
Regressive tax-
Give an example of regressive tax:
Direct tax-
Give an example of a direct tax:
Indirect tax-
Give an example of an indirect tax:
Gross pay-
Net pay-
Deductions-
Social Security-
Medicare-
What is a 401K retirement plan?
Mutual Fund-
Questions for 3 solutions
What are the 3 overarching types of economic systems that enable human beings to solve basic economic
problems?
How do traditional societies gain the skills needed to keep the economy productive?
What are 3 modern examples of a command economy?
The exercise of authority, as in a command economy, is the most powerful instrument that society has for
what?
How and when do democratic societies utilize command economy traits?
Economies in Economics
Define a market economic system:
List and explain the six major characteristics of a market economic system:
Define command economic system:
Define traditional economic system:
Describe the 3 economic systems. Then give 3 advantages and 3 disadvantages of each. Finally, after
analyzing all 3 economic systems, indicate which system you would prefer and why.
Is the United States a pure market system? Why/why not? Indicate what system the United States has and
give an example of how the U.S. portrays all the economic systems.
3 economic systems (worksheet)
Know the 3 economic systems and problems associated with each. Be able to indicate how each problem
would be addressed.
Chapter 8: Supply and Demand
Law of Demand:
As price goes ___________, quantity demanded goes ____________
As price goes ___________, quantity demanded goes ___________
What type of relationship is a demand curve?
Law of diminishing marginal utility:
Real income effect:
Substitution effect:
Demand curve:
Draw and label a demand curve:
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What does P stand for?
What does Q stand for?
What relationship is demand curve?
Is the slope upward or downward sloping?
Price Elasticity of demand:
Law of Supply:
Draw and label the supply curve:
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What does P stand for?
What does Q stand for?
What relationship is supply curve?
Is the slope upward or downward sloping?
Draw an equilibrium price and identify where the surpluses and shortages fall. Be able to explain why
there are shortages and surpluses.
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Define equilibrium price:
Shortage:
Surplus:
Complimentary good:
Give 2 examples:
Substitute Good:
Give 2 examples:
5 Determinants of Demand
List the 5 determinants of Demand and explain each one.