Handout #

Name ______Hour ______

Final Exam Review – 40 pts

Due on Exam Day

Vocabulary: Define the following terms

Unit 1: Personal FinanceUnit 5: Market Structures (Ch. 7)

CreditBarrier to Entry

DeductionEconomies of Scale

DiversificationMerger

FDICMonopolistic Competition

FICO ScoreMonopoly

Tax BaseNon-price Competition

Unit 2: Economics and Choice (Ch.1-3)Perfect Competition

Capitalism Predatory Pricing

Communism Unit 6: Business Organizations (Ch. 8)

Cost Benefit AnalysisBond

EfficiencyModified Free Enterprise

Free RiderFranchise

MacroeconomicsPublic Corporation

MicroeconomicsUnit 7: Measuring Economic

Open OpportunityPerformance (Ch 12-13)

Public GoodsAggregate Demand

Unit 4: Supply and Demand (Ch. 4-6)Depression

Complementary goodsGross Domestic Product (GDP)

Demand CurveElasticity of Demand

DisequilibriumInflation

Equilibrium PriceUnit 8: Gov’t in Economy

Law of Diminishing Marginal UtilityInt’l Trade (Ch. 10, 15-17)

Price CeilingBudget Deficit

Price FloorBudget Surplus

ShortageEconomic Interdependence

SupplyFederal Debt Ceiling

SurplusEuropean Union (EU)

Variable CostsProtectionist Policies

Trade Barrier

Questions: write all answers in complete sentences

Unit 1: Personal Finance

  1. Why would someone make a long term investment? A short term investment?
  2. What are the three guidelines for investing?
  3. What are the least risky and riskiest investments?
  4. What is the difference between credit cards and debit cards?
  5. What is a sin tax
  6. What is a regressive tax? Give an example

Unit 2: Economics and Choice (Ch.1-3)

  1. What are the four factors of production?
  2. What does “No such thing as a free lunch” mean?
  3. What is the difference between positive and normative economics?
  4. What is the invisible hand?
  5. Describe elements of a market economy.
  6. What is a circular flow model? Identify the sectors, markets and how goods and money flow.
  7. What are the goals of producers?
  8. What is an externality? What is the difference between a positive and negative externality?

Unit 4: Supply and Demand (Ch. 4-6)

  1. Draw a supply and demand curve. Label all parts. For what is each used? What do the points represent?
  2. Where is equilibrium on a supply and demand curve?
  3. What are factors that influence supply?
  4. What are the factors that influence demand?
  5. How does lowering prices affect producers and consumers?
  6. What happens to price when supply increases? Decreases?
  7. What happens to price when demand increases? Decreases?

Unit 5: Market Structures (Ch. 7)

  1. Name and describe the different types of monopolies.
  2. Why is market allocation illegal?

Unit 6: Business Organizations (Ch. 8)

  1. Name and describe the different types of business organizations.

Unit 7: Measuring Economic Performance (Ch. 12-13)

  1. What does a change in GDP measure?
  2. What is a business cycle? What are the four periods of the business cycle?
  3. Name and describe the three different indicators that measure economic performance.
  4. What is the underground economy?
  5. What are the criteria for something to be included in a particular year’s GDP?
  6. What are the types of unemployment?

Unit 8: Gov’t in Economy and Int’l Trade (Ch. 10, 15-17)

  1. What is the Federal Reserve System?
  2. Explain expansionary and contractionary fiscal policy.
  3. In what two ways does the government influence the economy?
  4. Why are imports good for consumers?
  5. What factors contribute to a deficit?
  6. What is the difference between comparative and absolute advantage?
  7. What is NAFTA?
  8. Why do countries import goods?
  9. What is the purpose of the WTO?