12. Compare shortages and similarities in regards to how they are similar and different.

Transcription

1 Economics Midterm Review Name: Unit 1 - Chapters 1-4 in Economics Alive Book 1. What is economics? 2. Who is Adam Smith and why is he important? 3. What is the definition of positive economics? Give some examples. 4. What is the definition of normative economics? Give some examples. 5. What are the 7 principles of economics and give an example of each. 6. What is marginal utility and how does it affect the person's decision? 7. What is cost- benefit analysis and how is it used in decision making? 8. What is marginal analysis and how is it used in decision making? 9. What is the definition of scarcity? 10. What are some examples of resources that are scarce? 11. What is a shortage and give an example. 12. Compare shortages and similarities in regards to how they are similar and different. 13. What are the factors of production? 14 Give an example of land, labor and capital resources.

2 15. What are inputs in production? 16. What are outputs when dealing with production? 17. How do you measure productivity? 18. What are the two ways that productivity can be improved? 19. What is the invisible hand principle? 20. What are the six economic goals of an economy? 21. Why is it not possible to achieve all of these goals in one style of economy? 22. What are the 3 major types of market economies? Define each. 23. What is specialization and why is it important? 24. Why must people specialize and trade? 25. What are the benefits of specialization for the person and for the economy? 26. Where are people required to be more specialized in order to compete? Where can they be less specialized? 27. What is the law of marginal utility? 28. What is a production possibilities frontier or production possibilities curve? What does it tell us?

3 29. What can cause adjustments in the PPC/PPF? Give examples and how it would move the PPC/PPF. 30. What is the definition of comparable advantage? 31. What does it mean to have an absolute advantage? 32. How does comparative advantage influence a person's decision to trade? Unit 2 - Chapters 5, 6 and What is supply? 34. What is demand? 35. What is the law of supply? 36. What is the law of demand? 37. What is a supply shifter? Give examples. 38. In what directions can a supply shifter move the supply line? Use your examples. 39. What is a demand shifter? Give examples. 40. In what directions can a demand shifter move the demand line? Use your examples. 41. Draw a supply and demand graph. 42. What is equilibrium price?

4 43. How do you find equilibrium? 44. What is equilibrium quantity? 45. What does the "market clearing price" refer to? 46. What is a price minimum? 47. What is a price maximum? 48. What are price minimums and maximums also referred to? 49. Draw a minimum and maximum on a supply demand curve. 50. Which of the lines creates a surplus? Why? 51. Which of the lines creates a shortage? Why? 52. What is elasticity? 53. How can you tell whether a product is elastic or inelastic? 54. What type of products are usually elastic? Which are usually inelastic? 55. What is a positive externality? Give examples. 56. What is a negative externality? Give examples.

5 57. What are the 4 types of market economies and what are their characteristics? 58. How is price determined in most market economies? 59. What are public goods? 60. What are 3 problems with public goods? 61. What is collusion?

6 Economics Midterm Review Part 2 Name: Unit 3 Chapters 8-10 Chapter 8 Information to Know 1. What are all the characteristics of money? 2. What are the different types of currency we have had historically? 3. What is the difference between fiat money and backed money? 4. What are some examples of possible replacement currencies and why would they work to replace our current currency? 5. What are the different types of investments people can have and what is the risk and reward involved with each of these investments? 6. What is the Federal Reserve? 7. What are the responsibilities or jobs that the Federal Reserve is responsible for controlling? 8. How do banks go about making money? 9. Why do we have a banking system? 10. What is interest and what is its purpose in the saving and borrowing process? 11. What is simple interest and how is it calculated? 12. What is compound interest and how is it calculated?

7 13. Which type of interest is better for the saver? Which is better for the borrower? 14. What is the definition of an entrepreneur? 15. What are some of the characteristics an entrepreneur should possess? 16. What are some of the responsibilities that any business must follow? 17. What is business ethics and why companies usually follow a ethical code? 18. What are types of businesses and the characteristics of each a. Sole proprietorship b. Partnerships different types c. Corporations d. Non profits e. Franchises f. Cooperatives 19. What are the advantages and disadvantages of each type of business 20. What are stockholders/shareholders and what power do they have over corporations 21. What is a venture capitalist what other term is used to describe them? 22. What is the difference between a General partner and a Limited partner?

8 23. What is a union and why are they created? 24. What does it mean to be in a right-to-work state? 25. Throughout history, what groups have been discriminated against? 26. How have countries worked to fight against workplace discrimination recently? 27. What are the positives and negatives to the practice of affirmative action? 28. What are the difference ways a person can improve their human capital? 29. What is the definition of globalization and give an example. 30. What is the definition of inshoring and given an example 31. What is the definition of offshoring and give an example. 32. What is outsourcing and how does it differ from offshoring? 33. How are wages determined? 34. What is an equilibrium wage and how is it found in a market? Unit 4 Chapters 11 and What are the 3 different types of taxes and what is an example of each? 36. What are the main points/maxims that are taken into consideration with the creation of taxes?

9 37. How does the government go about protecting private property and why do they do this? 38. Why is the protection of private property important to the person who owns it? 39. What are the different jobs/roles of the government when it comes to the economy? 40. How does the government go about protecting the following groups and what agencies help to protect these groups? a. Consumers b. Investors c. Workers 41. What are some of the examples of illegal activity that these agencies are looking to prevent? 42. What are common resources and what are the problems behind common resources? 43. What is Cap and Trade and how does it benefit companies and the environment? 44. Why is government regulation and taxation a requirement for a successful society? 45. What is overregulation and what is the problem with it? What is deregulation and how does it affect an industry?