Econ Final Review Sheet

Understand the following key terms:

Paradox of value / Gross domestic product / Horizontal merger / Vertical merger
Conglomerate / Multi-national / Monopoly / Sherman Anti-trust Act
Unskilled labor / Semi-skilled labor / Skilled labor / Professional labor
Intergovernmental revenue / Flat tax / Baby boomers / Liabilities
Substitution effect / Trough / Peak / Recession
Recovery / Glass ceiling / Collective bargaining / Scarcity
Need / Land / Capital / Good
Service / Market / Productivity / Human capital
Opportunity cost / Trade-offs / Free enterprise / Standard of living
Sole proprietorship / Limited life / Limited partnership / Corporation
Bankruptcy / Microeconomics / Demand curve / Demand
Marginal utility / Diminishing marginal utility / Supply / Quantity supplied
Supply curve / Supply elasticity / Subsidy / Price
Price flexibility / Rationing / Rebate / Ration coupon
Macroeconomics / Craft/trade union / Strike / Boycott
Right-to-work law / Business cycle / Business fluctuation

Understand the following key ideas:

  1. What are the 4 factors of production?
  2. How does the production possibilities frontier illustrate opportunity cost?
  3. Understand the reasons for movement on the production possibilities frontier.
  4. How does government function in a command economy?
  5. Understand the details of a market economy
  6. Understand the details of the three elasticities: elastic, inelastic, unit elastic
  7. Know the difference between change in quantity demanded and change in demand.
  8. Understand the reasons for change in demand.
  9. What would fall under the category of fixed costs?
  10. Understand the conditions in which a surplus occurs.
  11. Understand the conditions in which a shortage occurs.
  12. Know the characteristics of perfect competition.
  13. What was the significance of the Clayton anti-trust act?
  14. What is the purpose of intergovernmental revenue?
  15. What is the largest category of spending for local governments?
  16. What are transfer payments used for?
  17. What is the largest category for state spending?
  18. Know the different attempts to establish a balanced budget.
  19. What is the largest sector of the economy?
  20. What is the consumer price index?
  21. Be able to explain the demand-pull theory of inflation.
  22. What are reasons for the growing gap between rich and poor?
  23. Understand the different types of unemployment: frictional, technological, seasonal, cyclical, & structural
  24. Understand the different methods in which management and labor settle disputes: mediation, arbitration, fact finding, injunction & seizure, presidential intervention.
  25. What is meant by the idea that prices act as signals in our economy?
  26. Understand the system of rationing.
  27. What is the significance of ecommerce?
  28. What is the negative income tax? How does it work?
  29. What event marked the beginning of the Great Depression?