ECONOMICS
FINAL EXAM REVIEW
Study Guide
This is a chapter-by-chapter study guide. Each concept listed will relate to
one or more questions on the final exam. Be prepared with in depth knowledge
about each concept and have this information organization. The exam will not
be in this order.
Chapter 1
Entrepreneur
Producers and Consumers
Production Possibility curve
Opportunity Cost
Natural, capital and human resources
Basic economic problem
Macroeconomics
Microeconomics
Chapter 2
Economic systems
-Traditional, Command, Free Market and Mixed Economies
Adam Smith
Chapter 3
Law of Demand
Demand graph-price in relationship to quantity demanded
Diminishing marginal utility
Elastic and inelastic demand
Shifting demand curves
Chapter 4
Law of supply
Supply graph-price in relationship to quantity supplied
Elastic and inelastic supply
Shifting supply curves
Production Costs
-fixed and variable costs
Chapter 5
How prices are arrived at in a competitive market
Market Equilibrium
Surpluses and Shortages
Positive and negative externalities
Chapter 6
Perfect competition
Monopolies
Oligopolies
Anti-trust legislation
Chapter 7
Corporations and limited liability
Stocks
Ownership in a corporation
Chapter 10
Gross Domestic Product (GDP)
-each part and what each measures (examples)
Business cycle
Chapter 11
Price indexes
CPI
Inflation
Demand-pull inflation
Cost-push Inflation
Hyperinflation
Black market or underground economy
Full employment
Types of unemployment
-structural, frictional, seasonal, cyclical
Underemployed
Lorenz Curve
Chapter 14
Monetary Policy
Chapter 15
Budget Surplus
Budget deficit
National debt
Progressive tax
Regressive tax
Flat (proportional) tax
Fiscal policy
Chapter 18
Interdependence
Specialization
Absolute advantage
Comparative advantage
Import quotas
Embargos
Tariffs
World Trade Organization (WTO)
Essay
Information to be given in class
