< Back to Econ Calendar

Econ Final

Study Guide

Use your class notes, handouts, and the textbook to review the following. .

• Economics

• Scarcity

• Incentives

• 4 Factors of Production

• Consumer/Capital Goods

• 3 basic questions (What to produce, etc.)

• Opportunity Cost

• 3 Economic Systems (Market, etc.)  Advantages & Disadvantages

• Adam Smith - invisible hand, Karl Marx - criticism of capitalism. (from handouts)

• Externalities (positive and negative, from handout)

• Public Goods, Free Rider Problem

• Law of Demand

• Law of Supply

• Demand/Supply schedules vs. curves

• Demand vs. quantity demanded

• Supply vs. quantity supplied

• Law of diminishing marginal returns

• Shifts in demand (causes, effects, curves)

• Shifts in supply (causes, effects, curves)

• What do the curves mean? Can you interpret them? (price, quantity, surplus, etc.)

• Price vs. costs

• Demand elasticity – causes and effects

• Supply elasticity – causes and effects (just the basics)

• Marginal revenues/costs

• Equilibrium Pricing

• Surplus/shortage

• Stock Market vocabulary (from class notes)

• GDP – equation/what’s not counted

• Real GDP

• Inflation – causes and effects

• Fiscal/Monetary Policy – goals, tools

• Absolute vs. comparative advantage

• Trade organizations (NAFTA, GATT, WTO)

• Trade barriers (tariffs, quotas, regulations)

• Advantages/Disadvantages of free trade