Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
CP Econ Unit 2 Study Guide AP Government- McCoy Due Date: Check off complete sections _____ Read Chp 4 – Demand _____ Key Terms and Concepts to study 1. Demand 2. Law of demand 3. Substitution effect 4. Income effect 5. Market demand schedule 6. 7. 8. 9. 10. Normal good Inferior good Complements Substitutes Elasticity of demand 11. Inelastic 12. Elastic _____ On a separate sheet of paper answer the following questions. Restate the question to receive full credit. 1. Think of a good, like gasoline, for which demand can become more elastic over time. What changes can take place in the long term to affect demand? 2. What are three characteristics of a demand curve? 3. List and describe three causes for shifts in the demand curve. 4. What are complements in demand? Provide an example. 5. Explain elasticity of demand in your own words. 6. What are the four factors that affect elasticity? 7. Will there always be a demand for inferior goods? How could demand for inferior goods decrease? ______ Read Chp 5- Supply ______ Key Terms and Concepts to study 1. Supply 2. Law of supply 3. Quantity supplied 4. Variable 5. Market supply schedule 6. Elasticity of supply 7. Marginal product of 8. 9. 10. 11. labor Fixed cost Variable cost Total cost Marginal cost 12. 13. 14. 15. Marginal revenue Operating cost. Subsidy Excise tax ______ On a separate sheet of paper answer the following questions. Restate the question to receive full credit. 1. Name and describe three factors that can cause a change in supply. 2. What are substitutes in production? Provide an example. 3. What are complements in production? Provide an example. 4. Compare the two terms increasing marginal returns and diminishing marginal returns. Describe two scenarios, one to explain and demonstrate each term. 5. How can the global economy affect the supply of a good in the U.S.? ______ Read Chp 6- Prices ______ Key Terms and Concepts to study 1. Disequilibrium 2. Excess demand 3. Excess supply 4. Price ceiling 5. Price floor 6. 7. 8. 9. 10. Rent control Surplus Surcharge Search costs Supply shock 11. Rationing 12. Black market 13. Spillover costs ______ On a separate sheet of paper answer the following questions. Restate the question to receive full credit. 1. Explain the characteristics of rationing. 2. List three reasons why a price-based system works more efficiently than central planning. Explain your answers. 3. Explain how prices act as a “language” in the free market system. 4. Identify the problems a price floor can cause. 5. Why might the government interfere with a market economy by setting prices? Provide examples of government interference. ______ Read Chp 7- Market Structures ______ Key Terms and Concepts to study 1. Perfect competition 2. Monopoly 3. Government Monopoly 4. Oligopoly 5. Natural Monopoly 6. Non Price Competition 7. 8. 9. 10. 11. 12. Cartel Price Fixing Collusion Patent Commodities Price Discrimination 13. 14. 15. 16. 17. Economies of Scale Deregulation Trust Antitrust laws Merger ______ On a separate sheet of paper answer the following questions. Restate the question to receive full credit. 1. Explain the 5 characteristics of perfect competition. 2. How does the U.S. government intervene in regard to monopolies and competition? 8/14 *Dates subject to change **Test and quizzes may include but are not limited to the material above.