Review for a last test . . .

A few of you were off doing what seniors do in the last month of high school, Thursday, when we passed out the review for the test.

So, here’s what was on the study guide, for your studying pleasure.

Questions on anything?  Ask them in comments, and I’ll get the quickest notice.

Be ready to answer these questions; also be prepared to tell which of your stocks performed best, name the company, name the stock symbol, and tell what the company does.

  1. The basic problem of scarcity is due to what?
  2. There Is No Such Thing As A Free Lunch – TINSTAAFL
  3. What are the basic goals of the American Economy?
  4. What is the basic economic problem facing all societies?
  5. What are the four major Factors of Production?
  6. Describe major characteristics of the American free enterprise system?
  7. Know the key characteristics of these economies:
    1. Market economy
    2. Traditional economy
    3. Command economy
    4. Communist economy
    5. Socialist economy
    6. Manorialism
  8. What is a resource market?
  9. All economic systems face scarcity.  Why?
  10. What is the most important role played by profit in a free enterprise system?
  11. What is a capital good?  How do capital goods differ from other goods?  How do capital goods differ from capital?
  12. What is a tradeoff?
  13. When the demand curve for a good shifts to the right, what happens to the price?
  14. What is an opportunity cost?  How does it differ from a simple tradeoff?
  15. What happens to the price of a crop if a freeze wipes out a lot of the harvest?
  16. What happens at the equilibrium point on the supply and demand graph?  How is that point defined or determined?
  17. Non-price determinants (factors) of demand cause the demand curve to shift.  What is a non-price determinant of demand?  Give an example
  18. What are major parts of a company balance sheet?
  19. What are the  advantages of a sole proprietorship form of business?
  20. How do stockholders make money from stocks?
  21. What is a stock, and how do we usually describe stockholders?
  22. What causes increases in the price of gasoline in America?
  23. In a free market economy, profit plays a special role.  What is that role?

    Official portrait of Federal Reserve Chairman ...

    Official portrait of Federal Reserve Chairman Ben Bernanke. (Photo credit: Wikipedia)

  24. Who is Ben Bernanke?  Describe the important roles of Ben Bernanke and the Federal Reserve play in the U.S. economy.
  25. What is a monopoly?  What are the signs of a monopoly in the marketplace?
  26. What is a stock certificate?
  27. What is “product differentiation?”  Why is it important in economics?
  28. What is the purpose of anti-trust legislation?
  29. FICA taxes pay for two major kinds of insurance; what are they?  What is FICA more commonly known as?
  30. How is GDP determined?  What does it measure?
  31. During which part of the business cycle is the Gross Domestic Product the lowest?
  32. What are the parts of the business cycle?
  33. If there is a deficit in the federal budget, what would help to balance the budget?
  34. What is the law of supply?  What does it say?
  35. What is the law of demand?  What does it say?
  36. How are the laws of supply and demand related?
  37. What are the differences between
    1. A command economy
    2. A market economy
    3. A traditional economy
  38. Give examples of each of the preceding kinds of economies.
  39. Give an example of a capital good?
    US Whig poster showing unemployment in 1837

    US Whig poster showing unemployment in 1837 (Photo credit: Wikipedia)


  40. What are the different types of unemployment?  Know how to recognize:
    1. Frictional unemployment
    2. Technological unemployment
    3. Other kinds of unemployment
  41. Can someone have a job and still be considered unemployed?
  42. What is the purpose of the FDIC (Federal Deposit Insurance Corp)?  When did Congress create FDIC?  What are the limits of FDIC?
  43. What are the advantages of doing business as a corporation, especially with regard to liability?
  44. The production possibilities curve is a model used by economists to illustrate what?
  45. Know these dead economists, and what they are famous for:
    1. Karl Marx
    2. Adam Smith
    3. John Maynard Keynes
    4. David Ricardo
    5. Thomas Malthus
    6. Milton Friedman
    7. Alan Greenspan
    8. Benjamin Bernanke
  46. What does NAFTA stand for – and what is it?
  47. Who wrote:
    1. Wealth of Nations
    2. Das Kapital (Capital, in English)
    3. Free to Choose

Quick review: Where are we so far, Semester 2?

Quick test on the basics.  What do you need to review?

You should review your notes so far, and especially the material we went over in class today.

You might want to review some concepts discussed here on the blog, especially:

Look for information on the circular flow diagram, on production factors, on factor markets.

Remember to use a real, practical example.  If we’re talking about markets, don’t just try to think of an abstract “market,” but think of a farmer’s market, or a flea market, or a supermarket.  Use real examples and the course will be easier to understand and follow, and you’ll learn it much more easily.