Download And Don`t Forget Your Final Project (worth 25 points)!

Name ___________________
Economics
Mr. Menard and Mrs Marteney
Exam Review for the 2nd Semester
Directions - The following list is a guide to the people, events, places and concepts you need to understand
from this semester. Complete the following terms, people, and questions ON A SEPARATE PIECE OF
PAPER! (or you can staple your answers together IN ORDER) As always, if you turn these answers in
before the unit test you will have the opportunity to gain as many as 10 extra points extra credit. These
questions will look very familiar!
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What is pork? Give an example
What is the difference between the public and private sector?
Why has public sector spending increased?
What are transfer payments?
What are grants in aid?
What is a subsidy?
What is the distribution of income?
The federal budget runs on a fiscal year – what’s a fiscal year?
What is the OMB and what impact do they have on the budget?
Which part of Congress assigns sub-committees to the budget?
What is an appropriations bill?
What is the difference between a budget deficit and budget surplus?
What is the difference between Medicaid and Medicare?
What is the difference between mandatory and discretionary spending?
What is a balanced budget amendment What level of government (state, local, federal) uses this?
What are intergovernmental expenditures? What are they used for?
What is deficit spending? Is it easy to predict?
What do we mean by a national debt?
What are trust funds – give an example?
What impact can the national debt have on interest rates?
What is a line-item veto? Is it constitutional?
What is a spending cap?
Why is reducing federal spending difficult?
What does savings mean?
What does a certificate of deposit (or CDs) show?
What are some examples of financial assets?
What are financial systems and what do financial intermediaries have to do with them?
What are some examples of nonbank financial institutions?
How do finance companies make and buy loans?
What are premiums?
What is a pension?
What are the 4 basic principles of a good investment?
What are the advantages to high and low risk investment?
What is a bond? What are its three parts?
What 3 factors must an investor look for before buying a bond?
What are the two companies that publish bond ratings? What is the highest rating? What is the
lowest?
Why are junk bonds risky?
What are municipal bonds? Are they taxed?
What are the advantages to buying savings bonds?
What are the differences between treasury notes, bills, and bonds?
What are IRAs? What are the advantages to them?
What is the difference between a capital and a money market?
What is the difference between a primary and secondary market?
What are equities?
Why are stocks priced correctly according to the Efficient Market Hypothesis?
What does a portfolio diversification decrease?
Name ___________________
Economics
Mr. Menard and Mrs Marteney
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What are mutual funds?
What are 401 K plans?
What are the two stock exchanges found in New York City?
What is an over the counter market?
What does the Dow Jones measure? What does the S&P 500 measure?
What is the difference between a bull and bear market?
What is the difference between a spots and futures market?
What is the difference between a call and put option?
What is macroeconomics?
What does the GDP measure?
What does the GDP exclude and what do those products mean?
What is the difference between current GDP, real GDP, and per capita GDP?
What does the GNP measure?
What does the NNP account for?
What does the NI account for?
What is the difference between personal income and disposal personal income?
Income flows through what four sectors? Which is the largest?
What is the equation for the output expenditures model? What do these symbols mean?
What is a census?
What is the difference between a rural and urban population?
Where has the center of population shifted as time as gone on?
What is infrastructure? How can population growth affect it?
What is a baby boom? What impact could these people born during it have on us today?
What is the dependency ratio?
Demographers (people who study the growth, density, and other characteristics of a population) look at
what 3 factors?
What is the current population growth rate?
What is the poverty threshold?
What are household incomes ranked into?
What does a Lorenz curve measure? According to this curve is the income gap increasing or
decreasing?
What impact does an education have on income?
What other reasons besides education have had an impact on the income gap?
What is welfare? What are food stamps and Medicaid?
What is the difference between the earned income tax credit and the negative income tax? Which is
used today?
What is the advantage of enterprise zones?
What is workfare? Who do they work for?
What is the difference in business cycles and business fluctuations?
What are the two parts of the business cycle?
What is it called when a business does not experience recession or expansion?
What happens in a depression?
What causes a business cycle?
What were the causes of the Great Depression?
What were some government agencies made to fix the economy after the Great Depression?
What is a leading economic indicator?
The composite index of leading economic indicators helps predict what
What is a price index?
What is the difference between inflation and deflation?
How do you calculate the CPI?
What is the difference between hyperinflation and creeping inflation?
What is the PPI and what’s it used to measure?
What is the demand –pull inflation theory?
What is the cost-push inflation theory?
What impact can high inflation have on purchasing power?
Name ___________________
Economics
Mr. Menard and Mrs Marteney
99) What groups of people are hit hardest due to inflation?
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How does inflation encourage speculation?
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Who is hurt more during a time of inflation: the creditor or the debtor?
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What makes up the civilian labor force?
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What does the unemployment rate measure? What does it not measure?
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What is the difference between structural, technological, cyclical, and seasonal unemployment?
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What is outsourcing?
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What is the difference in the GDP cap?
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What makes up a misery index?
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What happens in a barter economy?
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What were examples of commodity money?
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What is fiat money?
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What is specie?
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What 4 things help determine what can be used as money?
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What 3 roles does money fill in an economy?
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What is a medium of exchange?
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What is a measure of value and a store of value?
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Who issues most of our money? What is the name of that money?
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What are demand deposit accounts? What is the difference between M1 and M2?
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What is legal tender? When was it created?
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National banks were created by what act?
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What are gold and silver certificates?
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What does a central bank do?
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What is a bank run? When did it happen?
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What does FDIC mean? What do they do today?
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What does the fractional reserve system allow banks to do?
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What are excess reserves? Where are they held?
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Who owns the federal reserve? Who directs it?
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Who meets 8 times a year to evaluate the economy?
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What is monetary policy?
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What impact does the interest rate have on the money supply? What is easy money policy and how
is it different than tight money policy?
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What happens if the Fed raises or lowers the reserve requirement?
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What happens if the Fed increases or decreases open market operations?
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What happens if the Fed raises or lowers the discount rate?
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What are bank holding companies?
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What impact does Regulation Z have on consumers?
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What is the aggregate supply?
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What is on the axis’ of the aggregate supply curve? What direction does it go? Why?
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What is the aggregate demand? What is represented on the aggregate demand curve? What
direction does the aggregate demand curve go?
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What do the aggregate demand and supply curves show? Are their predictions exact?
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What is the macroeconomic equilibrium? When does it change?
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What is fiscal policy?
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What is the multiplier?
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According to Keynesian economics, what is the only force that can fight against government
instability?
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What is an automatic stabilizer? What are some examples?
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What are supply side policies? What is deregulation and what does it have to do with the
government? Do they believe in low or high taxes?
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What is monetarism?
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What is the difference between contractionary and expansionary policies?
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What were wage price controls? What president tried to pass them? Did they work?
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What are discretionary fiscal policies?
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What are discretionary passive policies?
Name ___________________
Economics
Mr. Menard and Mrs Marteney
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What are discretionary structural policies?
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Which type of policy used to be the most popular? What has stepped in to take it over?
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What is the Council of Economic Advisors? What role do these economists serve? What role do
the politicians serve? Does the president have to listen to them?
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What can economists prevent? What can’t they prevent?
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What is the difference between exports and imports?
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What are some services traded between countries?
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When do nations benefit the most from trade?
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What is an absolute advantage?
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What does does a production possibilities frontier measure?
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What is a comparative advantage? How does opportunity cost play into this? Who does
comparative advantage apply to?
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What is a tariff? What is the difference between protective and revenue tariffs?
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What are quotas? What are some other barriers to trade?
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What influences trade barriers?
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What is the difference between protectionists and free traders?
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What are the 6 arguments for protectionism?
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What do we mean by most favored nation clause? Is this a protectionist or free trade argument?
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What does the WTO do?
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What is the benefit of NAFTA? Who is it between?
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What do we mean when we say a foreign exchange rate?
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What is the difference between fixed and flexible exchange rates?
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What forces flexible exchange rates?
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What is the difference between trade surplus and trade deficit?
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What happens when the trade weighted value of the dollar falls or rises?
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What happens as the value of the dollar falls?
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Which is better: a strong or weak dollar? Why?
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What is a developing country?
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How do you compare poverty amongst countries?
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What is the most effective way to reduce poverty? As a result what has happened to the poverty
rate since 1981?
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What are the stages of economic development?
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What impact can a high crude birthrate and a high life expectancy have on economic development?
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What is external debt? What impact can defaulting have on it?
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What is capital flight?
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Where do internal and external funds come from in a market economy? What about in a command
economy?
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What are micro loans?
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What does the International Monetary Fund (IMF) and the World Bank do to promote external
funding?
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What are soft loans?
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What is expropriation?
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What is the difference between a free trade area and a customs union?
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What is the EU? What is their currency?
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What are the goals of the ASEAN?
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What is a cartel? Give an example and what do they control?
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What are the steps in a transition to capitalism?
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What is privatization? How can vouchers help?
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What was the first step of capitalism for Russia?
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How has China moved towards capitalism?
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What has helped Japan build a capitalist economy?
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What is a keiretsu?
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What is globalization?
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What is a multinational?
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What is outsourcing again?
Name ___________________
Economics
Mr. Menard and Mrs Marteney
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What is GATT?
What are 2 important trends of globalization?
What is a division of labor?
Why do people resist globalization?
What is scarcity?
What is the state of subsistence?
What type of nations has the lowest population growth?
In a developing country, how do economic incentives encourage population growth?
What is a renewable resource? Give examples.
What is a non-renewable resource? Give examples
How can price have impact on the use of resources?
What impact can a pollution permit have on a business?
What are the 5 steps towards making a good decision?
What is the modified free enterprise system?
Why is capitalism so successful?
And Don’t Forget Your Final Project (worth 25 points)!
Over these past few weeks you have learned about economics in general and what impact that it can affect
you. As we help you transition to either the personal finance portion of this course or your own economic
independence we wanted you to practice some of the skills necessary as part of your final exam. More
specifically in this final project (worth 25 points) you will:
1) Find a job and give out a short description of it in your poster or power-point presentation (2
points)
2) Fill out a weekly paycheck with the necessary tax and benefit deductions as part of power-point or
poster presentation (5 points)
3) Complete a monthly budget with 12 steps as part of a power-point or poster presentation (12
points)
4) Create a pie chart of your monthly expenses as part of your power-point or poster presentation (3
points)
5) A reflection on what you have learned in this project (at least 2 paragraphs – 3 points)