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?