Download Name: Economics Final Exam: Study Guide The following terms and

Name:
Economics Final Exam: Study Guide
The following terms and questions will be on your final exam, in the form of matching,
multiple choice, short answer, and essay.
The terms and questions have been organized by chapter:
Chapter 1:

Goods

Economics

Shortage

Labor

Land

Capital

Services

Human Capital

Difference between shortage & scarcity

Factors of Production

Trade-offs (Why does every decision involve trade-offs?)

Production possibilities curve (What does it show?)

Economic efficiency

Why is “guns and butter” an example of a trade-off?

Entrepreneurs: What do they do?

ESSAY: How can we make the best economic choices? 3 paragraphs—strong
thesis needed
(Think in terms of: The effects of scarcity, trade-offs, opportunity cost, decision
making, and production possibilities)
Chapter 2:

Centrally Planned Economies

Traditional Economies

What must a nation’s economy do in order to improve the standard of living?

Why do people need to buy and sell goods and services? (In other words, why do
markets exist?)

Adam Smith

Carl Marx
Chapter 3:

Why is America known as the “land of opportunity”?

Profit Motive

Microeconomics

Positive externality

Negative externality

What is the role of government in a free enterprise system?

GDP

How do consumers influence the US economy?
Chapter 4:

Law of demand

Demand

How do consumer expectations affect the economic choices they make?

Complimentary Goods (give an example)

Inferior Goods (give an example)

Substitute Goods (give an example)

Elastic demand/Examples of elastic goods

Inelastic demand/Examples of inelastic goods
Chapter 5:

Good that are inelastic in the short term: (and why are they this way?)

If the price of an item goes down, what happens to producers?

Supply schedule

How does technology effect production?

What will happen if the cost of production goes up?
Chapter 6:

Price ceiling (and what is the purpose?)

Minimum wage

Equilibrium (What is a market at equilibrium?)

Price Floor

Shortage

Rent control

Surplus

Disequilibrium

What happens to the price of a good or service when there is a shortage?

How does rent control help some and hurt others?
Chapter 7:

Competitive markets

Start-up costs
Chapter 9:

Off shoring (why does it occur?)

Why do employers hire temporary workers?

What is the largest sector in today’s economy?

Why don’t employers want workers to strike?

What are the goals of labor unions?

What are the requirements to be considered employed?
Chapter 10:

List & Describe the 6 characteristics of money

Simple Interest

Compound Interest

Mortgage
Chapter 11:

New York Stock Exchange (what does it do?)

Bull Market

Bear Market

Common stock

Preferred stock

ESSAY: How do your savings and investment choices affect your future?—3
paragraphs (Have a thesis, and think about different types of bonds, stocks, and
ways to save your money, keeping risk in mind)