Economics – Mrs. Andrews
Final Exam Study Guide
Please review the following power points – if you do not have one, they are all uploaded on my website
1. The Study of Economics
2. Economic Systems
3. Globalization
4. Understanding Demand
5. Understanding Supply
6. GDP
7. The Origins of Money
Review: Completed study guide for extra credit
1. Economics definition
2. What scarcity is why it is created
3. Why unlimited wants create scarcity
4. Wants v Needs
5. Factors of production
6. Opportunity Cost
7. Cost Benefit Analysis
8. Difference between Free Enterprise and Socialism
9. Difference of and the characteristics of the different economic systems – market, command and mixed (refer to handout)
10. Theory of Adam Smith and self-interest
11. Belief of Karl Marx and the value of produced goods
12. The three basic economic questions
13. Globalization defined
14. First era of globalization
15. Return of globalization in the 20th century
16. Costs of globalization
17. Demand defined
18. Law of demand
19. Needs to be present in order for demand to exist
20. Substitution effect
21. Income effect
22. Demand curve shifts resulting from increase or decrease of demand
23. Causes of shifts in the demand curve
24. Supply defined
25. Law of supply
26. Difference between elastic and inelastic
27. Factors affecting elasticity
28. Marginal production of labor
29. Negative marginal returns
30. Diminishing marginal returns
31. Fixed v variable costs
32. Effects of rising costs
33. GDP defined
34. % of GDP produced for household consumption
35. Functions of money
36. Components of M1 & M2
37. Why transaction costs are higher in a barter economy
38. Why credit cards are not money
39. What does it mean that the Fed is a central bank
40. Responsibilities of the Fed
41. Banks use excess reserves to create loans