• Semester Exam Review
    This is in the order of your book

    Unit 1: Intro to Economics?

    1. What is the fundamental problem of economics? Explain it. (5A)

    2. Draw and interpret a production possibilities curve. What principle of economics does it illustrate? Label points on the PPC that are efficient, inefficient, and unattainable. (5B)

    3. What factors can cause a PPC to shift? (5B)

    4. Name and describe the four factors of production. (5A)

    5. Name and describe the three types of economic systems. Capitalist/free enterprise, socialist and communist (10A)

    6. What are the types and aspects of money? Which form does the United States currently use?

    7. Define and describe specialization. How does this relate to world trade and the concept of comparative advantage?

    8. What are the different types and aspects of money?

    Unit 2: Elements of Microeconomics

    1. What is demand? Explain the law of demand. (7A)

    2. What are the things that will shift a demand curve? Note that price changes don’t shift the curve. (7A)

    3. What does it mean if a good has elastic demand? What are the characteristics of goods with elastic demand? (7A)

    4. What does it mean if a good has inelastic demand? What are the characteristics of goods with inelastic demand? (7A)

    5. What is supply? Explain the law of supply. (7A)

    6. Know which direction demand and supply curves shift when there are changes in demand or supply. (7A)

    7. Draw a market for a good or service that is in equilibrium. (7B)

    8. Analyze how changes in supply and demand impact equilibrium price and quantity. (7B)

    9. What is a surplus? (7A)

    10. What is a shortage? (7A)

    11. What is a price ceiling? (7A)

    12. What is a price floor? (7A)



    Unit 3: Fundamentals of Free Enterprise

    1. Name and describe the characteristics of the four types of market structures. (9C)

    2. Define and give the advantages and disadvantages of the three types of business organizations. (9A)

    3. What is a stock? (12B)

    4. What is a bond? (12C)

    5. What is investing? (11A)

    6. How can investing in stocks be profitable? (12C)

    7. What government agency regulates investing in the stock market? (15A)

    8. What is an APR? (18G)

    9. What makes up a credit score and why does it matter? (18G)

    10. What is liquidity? How does it relate to returns on investment?

    11. What is risk? How does it relate to returns on investment?


    Unit 4: Elements of Macroeconomics

    1. What is Gross Domestic Product? Identify the characteristics of goods that are counted as part of GDP. (16B)

    2. What statistic is used to measure inflation? (16B)

    3. What is the labor force? (16B)

    4. How is the unemployment rate calculated? (16B)

    5. Define the four types of unemployment. (16B)

    6. Identify the four phases of the business cycle and their characteristics. (16B)

    7. What groups of people are helped by inflation? (16B)

    8. What groups of people are hurt by inflation? (16B)

    9. What are the three functions of money? (4A)

    10. What are the two tools of fiscal policy? How would you use them to influence the economy? (17C)

    11. What roles does the government fulfill in the economy? (15A)

    12. Define progressive, regressive, and proportional taxes. (17A)

    13. What type of tax is the main source of revenue for the Federal Government? What other taxes do they collect? (17A)

    14. Revenue from what tax finances schools in Texas? (17A)

    15. What are the three primary functions of the Federal Reserve? (18A)

    16. Why does the Federal Reserve control the money supply? (18A)

    17. What are the three tools of monetary policy? Define each one. (18B)

    18. What is expansionary/easy monetary policy? How are the tools of monetary policy used to carry it out? (18B)

    19. What is contractionary/tight monetary policy? How are the tools of monetary policy used to carry it out? (18B)

    20. Who appoints the Board of Governors of the Federal Reserve? (18A)