Economics Test Reviews
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Transcript Economics Test Reviews
Economics Test Reviews
Unit 1
Characteristics of the U. S. free enterprise system
How does competition influence markets in the free
enterprise system?
Communist economic system
Be able to create a circular flow model
Opportunity cost
Business responsibilities
Be able to compare and contrast free enterprise,
socialist, and communist economic systems
Unit 1
Advantages and disadvantages of corporations
Sole proprietorships
How does a corporation raise capital?
How can government affect the circular flow model?
Basic economic problem
Friedrich Hayek
Production possibilities curve
Unit 3
Comparative advantage
Absolute advantage
Specialization
Trade
Tariff
European Union
North American Free Trade Agreement
How does international trade shift the PPC?
Opportunity cost
Unit 4
Pure competition
Monopolistic competition
Oligopoly
Monopoly
Demand
TIMERS
TIGGERS
Supply
Price, quantity, equilibrium price, equilibrium quantity
Be able to draw and interpret supply and demand curves
Why supply and demand curves shift
Market
Non-price determinant of supply and demand
Unit 5
Liquidity
Risks of investment
How to figure net worth
IRA
401K
Mutual fund
Five Cs of Credit
Benefits and costs of home ownership
How to payoff credit card debt?
Costs and benefits of bankruptcy
How to improve your credit score?
Open-end credit
Closed-end credit
Unit 6
Income tax, excise tax, tariffs
State, local, and federal taxes
How does the government regulate our economy?
How does international trade effect our economy?
Revenues, expenditures
Characteristics of economic expansion
Who has the authority to tax?, 16th Amendment
OSHA
Expansionary and contractionary monetary policy
How do new technologies affect economic growth?
Economic indicators- unemployment rate, housing starts,
Consumer Price Index (a measure for inflation), PPI,
bankruptcies, Gross Domestic Product, stock market prices
Unit 7
Commodity money
Fiat money
Representative money
Who owns the Federal Reserve?
What are reasons for the decline of the U. S. dollar’s value?
Pros and cons of barter, currency, credit, and debit cards
Phases of the business cycle
Tight money policy and easy money policy
Functions of money
Monetary policy
The Fed’s tools
Federal Reserve System
What happens when the reserve requirement is raised?