Economics Review Economic Fundamentals Microeconomics Vocabulary Go Back

Economics Review Economic Fundamentals Microeconomics Vocabulary Go Back to Questions Macroeconomics

Economic Fundamentals Go Back to Questions 1 A 1 B 2 A 2 B 3 A 3 B 4 A 4 B 5 A 5 B

Economic Fundamentals 1 A • The idea that there are limited resources to fulfill our wants is called __________ Go Back to Questions

Economic Fundamentals 2 A • Provide a definition for opportunity cost. Go Back to Questions

Economic Fundamentals 3 A • What is the difference between an economic system and a government system? • In other words, which two different questions do they address? Go Back to Questions

Economic Fundamentals 4 A • Explain the difference between microeconomics and macroeconomics. • Give an example of each. Go Back to Questions

Economic Fundamentals 5 A Laissez Faire: • Translated from French to English, what does it literally mean? • People who support a laissez faire approach to economics want more or less government regulation of the economy? • Laissez faire is an extreme approach of which of the three major economic systems? Go Back to Questions

Economic Fundamentals 1 B • Describe the difference between the words PUBLIC and PRIVATE as they relate to an economy. Go Back to Questions

Economic Fundamentals 2 B • List the three basic types of economic systems in the world. • Also, state what economic problem each attempts to address as well as that system’s particular answer to the problem. Go Back to Questions

Economic Fundamentals 3 B • I am deciding what to do with my birthday money. I really want to buy new shoes or go to a concert, but my mom wants me to take my little brother to the movies. If I choose to go to a concert, what is the opportunity cost? Go Back to Questions

Economic Fundamentals 4 B • Why are entrepreneurs one of the most valuable economic resources? Go Back to Questions

Economic Fundamentals 5 B • What are the economics features of a socialist country? Go Back to Questions

Microeconomics Go Back to Questions 1 A 1 B 2 A 2 B 3 A 3 B 4 A 4 B 5 A 5 B

Microeconomics 1 A • Explain the function of currency. • What is the difference between how currency used to be utilized and the current system of fiat currency? Go Back to Questions

Microeconomics 2 A • In a market system, it is said that _______ is the motivator and _______ is the regulator. Go Back to Questions

Microeconomics 3 A • In the market for #2 lead pencils, the equilibrium price is $0. 30 per pencil. • What would the price ceiling have to be? • What possible consequence results if the government imposes a price ceiling? • Why would the government enact a price ceiling for this product? Go Back to Questions

Microeconomics 4 A • Describe the difference between stocks and bonds. • For each, address: – level of ownership – relative risk – payoff Go Back to Questions

Microeconomics 5 A • Explain the concept of the invisible hand, who its originator was, and his significance in the world of economics. Go Back to Questions

Microeconomics 1 B • List the acronyms for what determines DEMAND as well as what determines SUPPLY Go Back to Questions

Microeconomics 2 B • When is the equilibrium price reached? Go Back to Questions

Microeconomics 3 B • What does the term APR mean? / What is it? • If I borrow $1000 at 12% APR for 20 years, how much can I expect to pay the first year in addition to the original $1000 I borrowed? Go Back to Questions

Microeconomics 4 B • The Law of _______ states that a higher price will cause a decrease in the quantity and a lower price will cause an increase in the quantity. Go Back to Questions

Microeconomics 5 B • Which of the following represents the correct relationship between supply and demand? A) B) C) P P R R I I C C E E Quantity Go Back to Questions Quantity

Macroeconomics Go Back to Questions 1 A 1 B 2 A 2 B 3 A 3 B 4 A 4 B 5 A 5 B

Macroeconomics 1 A • Do banks carry the complete sum of cash of each of its customers at all times? • Why or why not? • Is this a problem? Go Back to Questions

Macroeconomics 2 A • List AND describe the Four Factors of Production • In other words, what goes into making something? Go Back to Questions

Macroeconomics 3 A • What is the difference between a country’s GDP and their GNP? Go Back to Questions

Macroeconomics 4 A • A sustained increase in the general price level is known as _______ (This is why I cannot buy a stove for $8. 00 today, like Charles Ingalls did in the 1800 s) Go Back to Questions

Macroeconomics 5 A • What is specialization? • In what two ways is it beneficial to an economy? Go Back to Questions

Macroeconomics 1 B • The United States follows which basic economic model? Go Back to Questions

Macroeconomics 2 B • Why do lenders charge interest? Go Back to Questions

Macroeconomics 3 B • What does the term PPF stand for? • What is a PPF? • What is the purpose of a PPF? Go Back to Questions

Macroeconomics 4 B • Go Back to Questions

Macroeconomics 5 B • In the United States, wealth IS/IS NOT (choose one) equally distributed? • In the United States, 1% of the population owns roughly _______ % of the overall wealth. (_____ chairs for one person and _____ chairs for the other nine to share) Go Back to Questions

Vocabulary Go Back to Questions 1 A 1 B 2 A 2 B 3 A 3 B 4 A 4 B 5 A 5 B

Vocabulary 1 A • Describe the difference between a SHORTAGE and a SURPLUS Go Back to Questions

Vocabulary 2 A • Describe the difference between a SUPPLEMENTARY good and a COMPLEMENTARY good. • Give an example of each. Go Back to Questions

Vocabulary 3 A • Define the term WEALTH. • How is it different from being RICH? Go Back to Questions

Vocabulary 4 A • What does the term EXTERNALITY mean? • Provide an example of both a positive and negative externality. Go Back to Questions

Vocabulary 5 A • Explain the principles of the Trickle Down Theory. Go Back to Questions

Vocabulary 1 B • Describe the difference between a NORMAL good an INFERIOR good. Go Back to Questions

Vocabulary 2 B • What does the term PER CAPITA mean? • How is it used in relationship to the overall economy? Go Back to Questions

Vocabulary 3 B • Define the term AGGREGATE. • Provide a synonym for the word as well. Go Back to Questions

Vocabulary 4 B • What does the term SUBSIDIZE mean? • What would it mean for the US government to subsidize regular gasoline over diesel, for example? Go Back to Questions

Vocabulary 5 B • What is a FLAT TAX? • What is a GRADUATED TAX? • Which is more COMMUNIST in nature? Why? Go Back to Questions