EXAM REVIEW
Final Exam for Free Enterprise Spring 2011
Unit 1
1. Adam Smith’s beliefs
Unit 2
2. Trade-off
3. Scarce resources
4. Functioning economies must address which fundamental questions
5. Opportunity cost
6. Scarcity exists because…
7. Economic Interdependence
8. Increase in productivity leads to?
9. Distribution channels
10. Workplace efficiency
11. Command Economy
12. Monopoly characteristics
13. Basic Characteristics of capitalism
14. Property rights (unit 1 as well)
15. Government- public goods
16. Types of Markets
Unit 3
17. The Dow Jones Industrial Average
Unit 4
18. Proprietorships/partnerships/corporations
19. Business production costs
20. Cartel
21. Manufacturing/production
22. Equilibrium price
23. Entrepreneurship
Unit 5
24. Main purpose of financial markets
25. Laws of Supply and Demand
26. 3 factors of production (land, labor & capital: function and purpose of
each)
27. Substitution effect
28. Personal income effects on demands
Unit 6
29. Sin taxes
30. Government taxes= Federal, state and local
31. Deficit spending
32. Fiscal policy and monetary policy
33. Greatest role of ending the Great Depression
Unit 7
34. Gold standard
35. Imports
36. Federal Reserve roles & responsibilities
37. Federal Trade Commission
38. FDIC
39. Legislation passed during recessions to do what?
40. Real estate financial institutions provide what type of service?
41. Difference between commercial banks and credit unions
42. Interest rates increase encourages people to___
Unit 8
43. Unemployment
44. Global Economy (U.S. compared to other countries)
45. Productivity increases; Standard of living_____
46. Business Cycle (trough, expansion…)
47. CPI rises during periods of inflation
48. Underemployment
49. Inflation and its effects
50. GDP, GNP, CPI, PPI (How economic growth is calculated)
51. U.S. dollar increasing cause imports to increase
Unit 9
52. Protective tariff
53. NAFTA (unit 8 too)
