Economics:
Final Exam Study Guide
Chapter
1
Capital
Resources
Shortage
Entrepreneur
Factors of production
Production possibilities curve
Law of increasing costs
Guns or butter
Scarcity
Opportunity cost
Chapter
2
Three economic questions
Centrally planned economy
Key economic questions
Mixed economy
Traditional economy
Market economy
Free market
Product market
Chapter
3
Business cycle
Chapter
4
Demand
Law of demand
Total revenue
Ceteris Paribus
Market demand schedule
Elasticity/Inelasticity of demand
Elasticity: factors effecting
Demand Curve: effects of shift
Unitary elastic
Demand schedule
Market demand schedule
Chapter
5
Supply
Law of supply
Elasticity/Inelasticity of supply
Quantity supplied: relationship
to selling price
Elasticity: factors effecting
Chapter
6
Equilibrium
Disequilibrium
Equilibrium: effects of change
in supply
Chapter
7
Government monopoly
Monopolistic competition
Non-price competition: forms of
Cartels
Perfect competition: conditions necessary for
Imperfect competition:
conditions necessary for
Natural monopoly
Chapter
8
Sole proprietorship: advantages
Sole proprietorships: percentage
of businesses
Partnerships
Mergers (vertical, horizontal)
Corporations: characteristics
Corporations: percentage of
businesses, percentage of all goods sold
Nonprofit organizations
Chapter
10
Barter system
Fiat money
Three uses of money
Characteristics of money
Representative money
Commodity money
FDIC
Liquid Assets: examples
MI money
Fractional reserve banking
Chapter
11
Financial intermediaries
Bonds: parts
Bonds: types
Stock market: exchanges
Short Essay:
1.
How do the four types of market structure (command,
market, mixed, traditional) differ?
2.
Identify the three uses of money and give an
example of each.
3.
Explain the difference between elastic and
inelastic demand.
4.
Differentiate between the law of demand and the law
of supply.
5.
Explain the main points of Adam Smith’s economic
theory outlined within Wealth of Nations.
6.
Explain how actions by the federal government can effect the supply and demand for goods within the market.