Benchmark Review How do economists define scarcity? What is the difference between scarcity and shortage? What are the three factors of production? What is trade-off?

Benchmark Review What is a production schedule? What is the opportunity cost of moving from one point to another along the frontier? What does a point under the curve demonstrate? What two factors can cause a shift left or right on the curve?

What is meant by “guns or butter”? What is an entrepreneur? Benchmark Review What is meant by “guns or butter”? What is an entrepreneur? What are the 3 economic questions? What is an economic system?

Benchmark Review Name and give the characteristics of the 4 economic systems. What is specialization? In a free market economy, explain the product and factor market. How does the physical and monetary flow move between households and firms?

Benchmark Review Name and give examples of productive resources and resource payments. How do buyers and sellers act in their own self-interest? Explain competition. What is the “invisible hand”.

Benchmark Review Know and explain 4 advantages of the free market? What is Laissez- Faire? What are the characteristics of socialism and communism? How does government affect the circular flow diagram?

Benchmark Review Identify several countries that lie in the continuum from centrally planned and free market economies Identify 7 basic principles of free enterprise. Name 2 roles of the consumer in the free market. What is the role of government in the free market?

Benchmark Review What is macroeconomics? What is a business cycle? What is GDP (gross domestic product)? How does the government promote economic strength and encourage innovation?

Benchmark Review What role does the government play in fighting poverty? What government programs attempt to aid those facing poverty? Explain and list examples of government redistribution programs. What is Demand?

Explain market failure. Benchmark Review What is a public good? What is a free rider? Explain market failure. What is an externality (positive and negative)?

What is “quantity demanded”? What is the Law of Demand? Benchmark Review What is “quantity demanded”? What is the Law of Demand? What is a demand schedule? What are normal and inferior goods?

What causes a shift in demand? What are complements and substitutes? Benchmark Review What causes a shift in demand? What are complements and substitutes? Know how to read and understand the demand curve. What is Supply?

What is “quantity supplied”? What is the “Law of Supply”? Benchmark Review What is “quantity supplied”? What is the “Law of Supply”? What effect does price have on supply? What are fixed, variable and total costs?

Benchmark Review What is the relationship between marginal cost and market price (marginal revenue)? What is government’s influence on supply? Explain the effects on supply for government subsidies, taxation and regulation.  What is equilibrium?

What creates surplus and shortage? What is rationing? Benchmark Review What creates surplus and shortage? What is rationing? What is a price ceiling and price floor? What do minimum wage and rent control create?

Benchmark Review In a free market, how do prices lead to an efficient allocation of resources? How do buyers and sellers communicate through price? What is considered a negative side effect of the minimum wage? What is the most obvious factor affecting demand elasticity?

Benchmark Review What curve shows the relationship between the price and the quantity customers are willing to purchase at? What is the name of the point at which supply and demand intersect? While supply is based on willingness of producers to supply, demand is most likely based on what? What type of cost occurs when an individual pays for a piano lesson instead of going to a movie?

Benchmark Review What is the most likely incentive for entrepreneurs to start a business? John is liable for all the debts of his company. John has which type of business organization? What is meant by the statement "money is a medium of exchange"? Before money was invented, how were goods and services exchanged?

Benchmark Review Please use your textbook (glossary and index) to answer your review questions Use your notes as well You may use your google machine as well At the end of class, please cut up your questions and place them in the zip lock bag; write group members name on the bag with a sharpie

Benchmark Review Bart has decided to buy some water balloons rather than get an extra milk at lunch. Choosing among economic alternatives is referred to as Mr. Green is opening a new bakery. He has purchased an industrial oven. This oven represents which factor of production? An opportunity cost is