Economics Benchmark I

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

1. horizontal
2. vertical

27.  Conglomerates

28.  Multinationals

29.  Cooperatives

1. Consumer
2. Service
3. 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

1. Stage I
2. Stage II
3. 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