From FALL 2015 DDAECONOMICS FINAL EXAM STUDY GUIDE
# OF QUESTIONS / STANDARD / TOPICS / CHAPTER / KEY TERMS / IDEAS TO REVIEW4 / Be able to identify and explain the supply and demand curve. (CH 4,5) / Laws of demand and supply, which way curves slope, causes of a SHIFT of the curves, how price changes effect the curve, substitution effect, income effect, elasticity and their determinants, be able to identify the curves and schedules
3 / Be able to compare and contrast the 3 types of economic systems and discuss the 3 basic economic questions. (CH1, 2) / Traditional, Command, Market – strengths and weaknesses, free enterprise, mixed economy
3 / Be able to describe opportunity cost, scarcity and what the PP Curve illustrates. ( CH 1) / Fundamental basic economic problem, law of increasing costs, trade offs, opportunity cost, scarcity, 3 things the PPC show us, two things that can cause the curve to grow, points inside the curve show what be able to identify the curve
3 / Be able to describe the risk /return relationship in the field of financial investments and describe why diversification is so important. (CH 11) / Bonds, Mutual funds, stocks, shares, diversification, interest, dividends
3 / Be able to identify and label the different phases of the business cycle. (CH 13) / Peak, trough, recession, expansion, be able label on a graph, causes of the business cycle
3 / Be able to identify the goals and tools and types of monetary policy. (CH 14) / Open market operations, discount rate, reserve requirement, 3 goals, expansionary or loose, contractionary or tight, Federal Reserve
2 / Be able to identify and explain the factors of production. (CH 1) / Land, labor, capital, entrepreneurship
2 / Be able to identify the goals, types and tools of fiscal policy, including classical, Keynesian and Supple Side Theories. (CH 15) / John Maynard Keynes, Adam Smith, expansionary, contractionary, government spending, government taxing, recession, inflation, loose, tight
2 / Describe the types of business organization including strengths and weaknesses and advantages / disadvantages. (CH 3) / Sole proprietorships, corporations, partnerships (general and limited), horizontal merger, vertical merger, conglomerates, multinationals, non profits, cooperatives,
2 / Describe the types and key features of the 4 market structures, including examples and characteristics. (CH 7) / Pure competition, Monopolistic competition, oligopoly, monopoly, - characteristics of each, non price competition, price competition, product differentiation, types of monopolies, government regulation of monopolies, collusion, price maker, price taker
2 / Describe the 7 broad economic and social goals all economies try to achieve. (CH 2) / Economic equity, freedom, security, growth, efficiency, stability, full employment
2 / Describe the types of externalities, their effects and examples. (CH 7) / Positive, negative, public goods,
2 / Describe price controls and their effects with examples. (CH 6) / Price ceilings, price floors, surplus, shortage,
2 / Describe the benefits of monopolies and the purpose / goal of government regulation of monopolies. (CH 7)
1 / Describe the functions and characteristics of money. (CH 14)
1 / Be able to know what to look for when comparing credit, savings and investments. (CH 11) / Interest rates, fees, simple interest vs compound interest
1 / Describe marginal cost and the impact on prices and output. (CH 5) / Marginal cost, marginal revenue, 3 stages of production, profit maximizing quantity of output, break even point, revenue, profit
1 / Compare and contrast price and nonprice competition in market structures. (CH 7)
1 / Describe the theories of wages in terms of how they are determined for workers. (CH 8) / Market theory of wage determination, theory of negotiated wages, signaling theory, noncompeting categories of labor, unskilled, semiskilled, skilled, professional
1 / Describe the organization and function of the FED. (CH 14) / Board of Governors, district banks, Woodrow Wilson, responsibilities, FOMC, FAC, private ownership
1 / Be able to identify and explain the flow of money and goods in a circular flow of economic activity diagram. (CH 1, 12) / Product market, factor market,
1 / Describe the impacts of inflation in the economy. (CH 13) / Purchasing power, demand pull, cost push, fixed income
1 / Be able to identify the different types of taxes and provide examples, including direct and indirect taxes. (CH 9) / Progressive, regressive, proportional, sales tax, income tax, social security, medicare, incidence of tax, direct tax, indirect tax
1 / Be able to describe the effects of trade barriers on the international economy. (CH 16) / Protective tariff, revenue tariff, quotas, WTO, NAFTA, arguments for protection
1 / Describe the effects of externalities on the international environment. (CH 16) / Page 474 - 477