Economics
Credit by Examination Review Sheet
The exam will consist of 50 multiple-choice questions. The exam will be comprehensive. You may prepare for the exam by using Holt Economics by Robert L. Pennington, Holt, Rinehart and Winston, 2003.
The examination will test your understanding of general economic systems and how they work. You should have general knowledge of
· The mixed market system of the United States;
· The role of the government in the market place;
· The American economic system and international relations; and
· Consumer economics.
Not every question on the Credit by Exam will be represented here, but everything on the exam will be something you could have seen in the textbook. There should be no surprises.
Practice writing out a short definition to each of the following terms. Use your book’s index to find specific page numbers if you cannot find something as you go through the book.
1. scarcity 9. factors off production
2. entrepreneurship 10. factor market
3. command economy 11. product market
4. market economy 12. voluntary exchange
5. trade-off 13. profit motive
6. production-possibility frontier 14. sole proprietorship
7. opportunity cost 15. partnership
8. capital 16. corporation
17. nonprofit organization 40. revenue tariff
18. law of supply and demand 41. balanced budget amendment
19. substitute input 42. deficit spending
20. demand curve 43. Gross Domestic Product
21. supply curve 44. barter economy
22. diminishing returns 45. run on the bank
23. rationing 46. Federal Deposit Insurance
Corporation (FDIC)
24. depreciation
47. savings and loan crisis of 1980s
25. monopoly
48. Federal Reserve System
26. oligopoly
49. inflation
27. collusion
50. deflation
28. price floor
51. bill consolidation loan
29. public goods
52. pension
30. union shop
53. New York Stock Exchange
31. closed shop
54. mutual fund
32. collective bargaining
55. Consumer Price Index
33. boycott
56. Output-Expenditure Model
34. glass ceiling
57. John Maynard Keynes
35. benefit principle
58. market basket
36. proportional tax
59. decennial census
37. progressive tax
60. demographer
38. regressive tax
61. baby boomers
39. tax return
62. life expectancy
63. standard of living 86. Mikhail Gorbachev
64. tax base 87. privatization
65. affirmative action 88. zero population growth
66. Walter E. Williams 89. expropriation
67. depression 90. cartel
68. the Great Depression 91. OPEC
69. unemployed 92. population density
70. unemployment 93. subsistence
71. negative income tax 94. oil embargo
72. stagflation 95. aquifer
73. supply-side economics 96. Environmental Protection
Agency
74. demand-side economics
97. pollution permits
75. monetary policy
98. nonrenewable resources
76. fiscal policy
77. Bill Gates
78. tariffs
79. quotas
80. capitalism
81. socialism
82. communism
83. Karl Marx
84. Lenin
85. Stalin