Economics Final Exam Study Guide—Chapters 14, 17, 18

Chapter 14

1) What are the two business cycles?______

2) What is expansion?______

3) A severe recession can become a ______

4) What are 2 major causes of the Great Depression______Year it started______

5) Recession begins with a ______and ends with a ______.

6) What are 2 ‘external shocks’ that can cause business cycles in the US?______

7) What percentage denotes full employment?______

8) What 2 groups does unemployment NOT include?______

9) What are the 5 types of unemployment?______

10) Understand the definition of each type of unemployment.

11) Inflation that occurs at 500+% in a year is______at 1-3% yearly is ______at 100-300

annually is______. What is demand-pull inflation?______.

12) What are 5 consequences of inflation?______

______

13) more than ______% of Americans live in poverty. Since 1980 income distribution is US is more ____

14) What are 5 reasons for income inequality?______

______

Chapter 17

1) What is absolute advantage?______

2) What is a tariff? ______what is a quota?______

3) What is a revenue tariff?______

4) What does NAFTA stand for?______WTO stand for?______

5) Protectionists favor ______. What are 2 trade barriers ______

6) What is foreign exchange?______

7) What is foreign exchange rate? ______

8) Deficits and surpluses tend to be ______.

9) A weak U.S. dollar buys ______foreign goods.

10) Nations trade because they think imports are worth more than ______.

Chapter 18

1) In Capitalism the means of production are ______owned. Know advantages/disadvantages.

2) Determines prices in capitalism______.

3) In Socialism, the government owns& runs ______of the basic services. Know advantages/disadvantages.

4) In theory Communism is a ______society. In reality it is ______. Know disadvantages

5) Under Lenin, owning property was ______. Stalin’s 5 year plan achieved______.

6) Real force in Soviet Union after Stalin______. Soviet central planning authority______.

7) Why did the Soviet Union collapse?______

8) Where vouchers have worked Communist leaders have lost ______.

9) Mexico is moving towards ______. Russia is moving towards______.

10) Why has Japan been successful in business?______.

11) Japanese ‘protectionism’ has led to ______

12) Name the 4 ‘Asian Tigers’ ______

13) What Asian country had a banking crises in the 1990’s______

14) What former communist countries are moving towards capitalism______.

15) What economic system does Sweden have?______. What has cut into its economic growth?______.

16) How does Singapore develop its technology?______.

17) What country is Hong Kong a part of today?______.

18) In the 1990’s bad loans in Japan led to a bad______.