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Review Sheet – Economics Unit Test                                                                              period             

 

The unit test will be 40 objective questions and a 20-point ECR.  You will find all of these terms and concepts in your notebook, and you may want to check out a textbook.  Some suggestions: 

1.        Write out your notes as you study.  Writing helps you remember the information.

2.       Try to understand the relationships between the concepts, not memorize.  Memorizing will make you crazy and you will get overwhelmed.  If you can understand the material in context, you will remember it better. 

3.       If you can explain it to someone else, you understand it.  Try explaining these concepts to someone who was not in your class, and see if they understand it.  If they do, you explained it well. 

 

Vocabulary

·         economic wants

·         economic resources

·         goods and services

·         marketplace

·         money/currency

·         price

·         supply

·         demand

·         monopoly

·         competition

·         profit

·         standard of living

·         inflation

·         cost-benefit analysis

·         opportunity cost

·         capital

·         scarcity

·         social safety net

·         Gross Domestic Product (GDP)

·         Consumer Price Index (CPI)

 

Competing Socio-Economic Goals

·         economic freedom

·         economic growth

·         stability

·         equity

·         economic security

·         productivity

·         national defense

·         environmental protection

·         education

*You must be able to identify when a socio-economic goal is being used.

 

Comparing Economic Systems

·         What are the Big Three Economic Questions that all economies ask?

·         Be ready to define / describe market and command economies according to the following criteria:

·         ownership of property/private ownership

·         role of government

·         freedom of choice

·         economic incentives

·         competition

·         traditional economy

·         barter system

·         Is the U.S. a pure market economy?  Why or why not?

 

Regulatory Agencies

·         How can regulatory agencies influence the economy?

·         Identify five Regulatory Agencies:

·         Environmental Protection Agency

·         Food and Drug Administration

·         Federal Trade Commission

·         Federal Aviation Administration

·         Federal Communications Commission

 

Market Economy

·         capitalist / capitalism

·         free enterprise system / free market

·         consumers

·         producers

·         profit

·         stocks / shares

·         business cycle:  recession, recovery, prosperity

·         unemployment rate

·         What happens when there is scarcity (Great Coconut Shortage)?

·         How does a price freeze affect the economy?

 

Monetary Policy and Banks

·         monetary policy

·         Federal Reserve Bank

·         inflation

·         interest rates (be sure you understand what happens to prices when they go up and down)

·         What can the “Fed” do control inflation? to stimulate the economy?

·         Who is the current chairman of the Federal Reserve?

·         What is the role of the board of governors?

·         How does a bank make money off a loan?  (How could a bank lose money from a loan?)

·         What is a “run on the bank”?  Why is this a problem for the bank?

·         Why is there a need for government regulation of the economy?

 

Fiscal Policy -- Federal Budget

·         fiscal policy

·         national debt

·         deficit

·         debt

·         fiscal year

·         revenue

·         outlays

·         income

·         receipts

·         income tax

·         government expenditures

·         Internal Revenue Service (IRS)

·         budget priorities – what does the government spend its money on?

·         Entitlements

·         Social Security

·         Medicare

·         Medicaid

·         FARMs

·         WIC

·         TANF / TCA

·         What is the federal government’s biggest single source of tax revenue?

·         What is the government’s biggest entitlement program?

·         How can the federal government use fiscal policy to stimulate the economy?

·         Who is responsible for making the original budget proposal for the federal government?

 

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