Economics Benchmark I
Study Guide
Chapter 1 What is Economics
1. 4 factors of production
2. 3 basic economic questions
3. wants and needs
4. goods and services
5. paradox of value
6. utility
7. circular flow of economic activity
8. division of labor and specialization
9. trade-offs
10. opportunity cost
11. production possibilities frontier
12. cost-benefit analysis
Chapter 2 Economic Systems and Decision Making
13. command economy
14. traditional economy
15. market economy
16. economic and social goals of U.S.
17. voluntary exchange
18. features of capitalism
Chapter 3 Business Organization
19. partnerships
20. sole proprietorship
21. corporation
22. proxy
23. charter
24. dividend
25. depreciation
26. Mergers
- horizontal
- vertical
27. Conglomerates
28. Multinationals
29. Cooperatives
- Consumer
- Service
- Producer
30. labor unions
31. collective bargaining
32. specialization
Chapter 4 Demand
33. demand
34. microeconomics
35. demand illustrated
36. demand schedule and curve
37. law of demand
38. market demand curve
39. marginal utility
40. diminishing marginal utility
41. change in quantity demanded
42. elasticity
43. demand elasticity
44. inelastic demand
45. total expenditures
46. Determinants of demand elasticity
47. total cost of production
Chapter 5 Supply
48. law of supply
49. supply schedule and curve
50. market supply curve
51. quantity supplied
52. change in quantity supplied
53. change in supply
54. supply elasticity
55. theory of production (short run and long run)
56. law of variable proportions
57. total product
58. three stages of production
- Stage I
- Stage II
- Stage III
59. diminishing returns
60. fixed cost
61. overhead
62. variable cost
63. total cost
64. marginal cost
65. total revenue
66. marginal revenue
Chapter 6 Prices and Decision Making
52. shortage
53. equilibrium price
54. price floor
55. target price
56. deficiency payment
57. price
58. characteristics of rationing
59. Economic model
60. market equilibrium
61. surplus
62. price ceiling
Chapter 7 market Structures
63. perfect competition,
64. inadequate competition
65.monopolistic competition
66. price fixing
67. public disclosure
68. monopoly
69. Externalities
a. positive
b. negative
70. collusion
71. oligopoly