Economics Midterm Study Guide
A minimum of one sentence is required per vocabulary word/concept. On the exam, one must be able to not only recall the definition, but identify real world examples.
1. Price ceiling
2. How do companies keep up with demand?
3. Price controls
4. Equilibrium price
5. Price floor
6. Supply shifter
7. Excess demand
8. Market equilibrium
9. Inelastic
10. Elastic
11. Division of labor
12. Specialization
13. Absolute advantage
14. What is trade’s relationship to the value of goods?
15. Global trade
16. What would discourage specialization
17. Economic equity
18. Profit motive
19. Intellectual property laws
20. Command economy & its goals
21. How do societies decide what to produce?
22. Traditional economies
23. Mixed economy
24. Laissez-faire economy
25. Free enterprise system
26. Economic freedom
27. Three fundamental economic questions
28. Scarcity
29. Opportunity cost
30. What causes shortages
31. How does capital replace labor?
32. How can businesses raise productivity?
33. Unlimited wants
34. Factors of production
35. Natural Resources
36. Macroeconomics
37. Microeconomics
38. Trade-makes-people-better-off principle
39. Rational-behavior model theory
40. Positive incentive
41. Positive economics