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DCC Economics
FINAL EXAM REVIEW
Vocabulary
Mrs. Streever
NAME:________________________
Economics-(CH 1)
ScarcityOpportunity Cost-(CH 1)
**Example**
Want-(CH 1 definition)
**Examples
Need-(CH 1 definition)
**Examples
3 Basic Economic Questions that economic systems must
answer when dealing with limited resources:
1. What to Produce?
2. How to Produce?
3. For whom to Produce?
Natural ResourceNon-renewable Energy Source-(definition)
List examples
Most Used and Most Imported Energy Source(Energy Bklt)Renewable Energy Source-(definition)
List examples
America’s energy consumption vs. the World- ENERGY
BOOKLET: The United States consumes more than 20% (20%25%) of the world’s energy.
Global Warming (definition)
Global Warming Weather Patterns/Trends (Some Statistics:
Law of Supply-(CH2 definition)
Law of Demand-(CH 2 definition)
Supply Curve-(CH 2 definition)
Slope:
Demand Curve-(CH 2 definition)
Slope:
Equilibrium Price-(CH 2 definition)
Diminishing Marginal Utility-(CH 2 definition)
Example: BIG MAC
Shortage-(CH 2)
Surplus-(CH 2)
Compliment-(definition)
**Examples
Substitute-(definition)
**Examples
***KNOW THIS MODEL***
F ig ure 3
The S upply a nd Dema nd Model
P
$2.50
Supply
$2.00
Equilibrium
$1.50
$1.00
Demand
$0.50
0
0
10
20
30
40
50
Q/t
2-18
Poverty Rate-(definition)(CH 33)
Poverty Line-(definition)(CH 33)
U.S. Poverty Line 2014 for 1 person=$_____________
Highest Poverty Rates-(Race, Gender, & Ethnic groups)
(CH 33)*most likely to be in poverty*
Primary Goal of the Welfare system-(CH 33)
Medicare-(CH 33 & 22)
Medicaid-(CH 33 & 22)
Elastic-(CH 3)
**Example:
Inelastic-(CH 3)
**Example:
Unit Elastic-(CH 3)
Example:
Traditional Economy-(definition)
Communism/Command Economy-(definition)
Laissez Faire-(definition)
Capitalism/Market Economy-(definition)
Socialism-(definition)FISCAL POLICY(Controlled by Government)
CH 9: The Purpose of Fiscal Policy-
CH 9: The Main reason the Government collects TaxesSales TaxList 2 Major ways Government can “stimulate/expand
growth” of the economy:(CH 9)
List 2 Major ways Government can “slow down/contract
growth” of the economy: (CH 9)
CH 13: What does the U. S Constitutions say about
Government Spending? A _________must be passed to spend
$$$.
CH 14:Federal Deficit-(definition)
CH 14: Main cause of Federal Deficit isCH 14: National Debt-(definition)
CH 14: Current U.S. National Debt=
CH 14: Which is LARGER: The United States “Federal
Deficit” or the “National Debt?”(Circle one)
CH 14: 2 Countries with highest proportion of U.S. debt?=
ANSWER: China & Japan
FDA(Food & Drug Administration)FAA(Federal Aviation Administration)Enterprise ZonesMacroeconomics-(CH 6)
GDP-(definition)
Underground economy(definition)
What % range of GDP is underground economy? =**10-15%
Ideal GDP Growth Rate= 3%
CPI(Consumer Price Index)Consumer confidence accounts for how much of U.S. Economic
Activity=2/3rd or 67%
Inflation-CH 6 (definition)
**Pennyless Economy concept**
Deflation-CH 6 (definition)
Full Employment-(Definition)(NOTE: 4%-5% unemployment rate is considered to be full
employment not 0%)
U.S. Unemployment Rate-(I will advise you of the month/year
you need to know=
How is the Unemployment Rate Calculated? (Formula)=
_______________________X 100
Federal Reserve Bank (Feds)-(definition)
Current Chairman of the Federal Reserve
Bank=______________________________
Money-
Exchange RateBarter SystemExample:
****CHARACTERISTIC OF MONEY****
1. Medium of Exchange2. Measure of Value3. Store of ValueSecurities & Exchange Commission-(definition)
Most popular & widely published measure of stock
performance on the NYSE=Answer:**DOW JONES INDEX**
Credit UnionFDIC-(definition)
CH 39: Labor Unions-(Greater representation for what type of
employees?)
CH 39: Collective Bargaining
Single Payer Healthcare System-(definition)(CH 22/ppn23)
Another name for “OBAMACARE:(CH 22/ppn23)=
The U.S spends ________% of the GDP on healthcare
(CH 22/ppn23)
CH 29:Minimum Wage-(definition)(Current Federal Rate)-$
(Current State Rate)-$
CH 29: Who loses most from an increase in Minimum Wage?CH 20=Externalities(Definition)
(Examples):1.
2.________________
Name of Tax on Liquor & Tobacco-_____________
CH 25:BankruptcyCH 25:ForeclosureCH 25: Better Business BureauCH 25: Cease and Desist OrderCH 25: Sherman Antitrust Act-
OligopolyExample:
MonopolyExample:
CH 6: The Business Cycle(definition)
List stages:
Peak, __________,_________,___________,___________
(Know this Graph)
The Bus ines s Cycle
Peak
y
Re
Ex
p
r
ve
co
an
si
on
RGDP
Peak
Rec
ess Trough
ion
time
6-25
DepressionRecession-
CH 35: Progressive IncomeTaxCH 33 & 35: EITC(definition)
CH 33 & 35: Child CreditCH 34: Social Security-(detailed definition)
CH 34: List ways to keep Social Security solvent/from going
bankrupt:
1.
2.
3.
Teacher Tenure(Too Many Children Left Behind)Is “tenure” lifetime job security regardless of performance or
merit? YES OR NO (Circle One)
Sole Proprietorship=(Definition)
List 3 Characteristics
Partnership=(Definition)
List 3 Characteristics
Corporation=(Definition)
List 3 Characteristics
Vertical Merger-(definition)
Example: Ford merges with Goodyear
Horizontal Merger-(definition)
Example: Cell Phone Companies, Banks