1. Essays (2) Answer one question from each section

2.  Tradition, Command, and Market Economy  Define each  Describe how each answers 4 basic economic questions  Strengths and weaknesses

3.  Supply and Demand  Discuss how it (S and D) influences income level  3 professions  Should Social Value play a larger role?

4.  Budget Deficits and Debt  Define Budget deficit  Define National Debt  Discuss politics of balancing the budget (Why so difficult)

5.  Taxation  Personal Income Tax  Social Security Tax  Sales tax  Estate tax  Describe each (2)  Is the tax “ ideal”? (fair, effective, neutral)

6.  Unions  Goals (3)  Tools (3)  Effectiveness

7.  Federal Reserve System  3 tools  Business cycle – “easy” or “tight” money policy  How to combat inflation?  Board of Governors (why appointed not elected? Explain)

8.  National Economic Goals  Full employment, Price Stability, and Economic growth (define each)  Business cycle – how it complicates achieving each goal  Inflation – how does it influence consumer behavior