Economics Final Exam Study Guide
Ch. 1:
3 Basic Economic Questions
Scarcity (pg. 6)
Circular Flow Diagram pg. 15
Factors of Production (pg. 8)
Capital Investments pg. 8
Ch. 2:
Production Possibilities Curve (pg. 21-23)
Economic Systems (Command, Market, Mixed, Traditional) pgs. 35-38
Broad Economic Goals (section 2)
Ch. 3:
Business Organizations (Proprietorship, Partnership, Corporation)
Common Stock (pgs. 67)
Liabilities (pg. 63)
Ch. 4:
Demand Curve (pgs. 93-94, 98-99)
Compliments (pg. 101)
Inelastic/Elastic (pg. 104)
Demand/Law of Demand (pgs. 93)
Ch. 5:
Costs – Fixed, Variable, Total (pgs. 133-134)
Profit Maximizing Quantity of Output
(pg. 134-137)
Ch. 6:
Shortage & Surplus (pg. 150)
Price / Quantity Graph (pgs. 143, 149-153)
Ch. 7:
4 Market Structures (Monopoly, Oligopoly, Monopolistic Competition, Pure/Perfect Competition) pg. 170-175
Inadequate Competition (pg. 180)
Externalities (negative & positive) pgs. 182-183
Natural Monopolies (benefits & gov’t regulation) pg. 176
Ch. 9:
3 Types of Taxes (pgs. 235)
Indirect vs. Direct tax pg. 231
Income Tax (pg. 239)
State Revenue (pg. 242)
Ch. 10:
Medicaid (pg. 271)
Ch. 11:
Risk vs. Return of investments (savings accounts, CDs, stocks, bonds, etc…)
Ch. 12:
GDP (pgs. 320)
Macroeconomic Sectors (pgs. 325-326)
Output Expenditure Model (pg. 327)
Deficit & Debt of economies pgs. 278-283
Ch. 13:
Business Cycle (pgs. 353-359)
Sources of Unemployment (pgs. 372-373)
Inflation & its impact on an economy
Demand Pull vs. Cost Push pg. 365
Ch. 14:
Federal Reserve System (organization & function of the Fed) pgs.400-401
FDIC (pgs. 395-396)
Monetary Policy!!
Open Market Committee (pgs. 394, 400-401)
Fiat Money (pg. 384)
Functions of Money (pgs. 386-387)
Ch. 15:
Fiscal Policy (pgs. 420-422, 430)
Keynes (pgs. 420-421, 428)
Ch. 16:
Tariffs & Quotas (pg. 448)
NAFTA (pg. 454)
Absolute & Comparative Advantage (pg. 443-444)
Trade Deficit (pg. 456, 460)
Additional Items:
Supply & Demand Graphs
Shifts in Supply or Demand Graphs/Why?
Equilibrium Price
Economists (Smith, Malthus, Keynes, Friedman, Krugman)