Review 5

1. What are two types of interest?
2. Explain what withholding tax does to your paycheck.
3. What is a bond?
4. What is GDP?
5. What does deregulation do to prices and output?
6. What are monetary policy and fiscal policy?
7. Which is faster, monetary policy or fiscal policy?
8. What is the difference between a developed and a developing nation?
9. What is the purpose of budgeting?
10. Why do nations trade with each other?
11. What is inflation?
12. What is the key problem facing poor nations?
13. How can a monopoly be legal?
14. What are antitrust laws?
15. What is a deficit?
16. What is price discrimination?
17. What are the factors that affect elasticity?
18. Explain the relationship between price and quantity supplied and quantity demanded.

Vocabulary words/terms from chapter 11 - Financial Markets:  Savings, Certificate of Deposit, Financial System, Finance Company, Premium, Pension, Risk, Bond, IRA, Capital Market, Money Market, Mututal Fund, 401(K), OTC, DJIA, S&P500, Bull Market, Bear Market

Video/discussion - This Is Water - http://www.youtube.com/watch?NR=1&v=xmpYnxlEh0c&feature=endscreen

Quarterly Writing Assessment #2 - counted as a test grade

This review is a test grade...

1. Explain how scarcity is different from shortage.
2. What is an opportunity cost, and how does it show the true cost of a decision?
3. Explain what externalities are, and give 2 examples of them.
4. Explain what price ceilings are.
5. Explain what price floors are.
6. How can a monopoly be legal?
7. What is absolute advantage?
8. How does comparative advantage affect trade between nations?
9. What is the purpose of having a budget?
10. What is the difference between progressive and regressive taxation?

Articles from pgs. 446 (1-2) Virgin Group, 462 (1-2) Jerry Yang, 508 (1-2) Emerging Giants, 519 (1-2) Toyota

Vocabulary words/terms from Unit 5 (chapters 16-18): Exports, Imports, Absolute Advantage, Production Possibilities, Comparative Advantage, Trade Deficit, Trade Surplus, Developing Country, GLobalization, Division of Labor

Notes/discussion on who is in the US lbor force, what is unemployment and how is it calculated (underemployment, as well), what is inflation, what are the effects of inflation, and how inflation is calculated.

Pgs. 467 (Article on DR-CAFTA, 1-3), 477 (#6), 478 (Article on Celtel, 1-2), 484 (5-6), 495 (#6), and 496 (Article on Karl Marx, 1-2)

Review #3

1. Identify what the FDIC is.
2. What role do entreprenuers play in an economy?
3. What is profit motive?
4. How are the learning effect and screening effect related?
5. What does 'Guns or Butter' mean, and how does it relate to opportunity cost?
6. What does a price ceiling result in? What does a price floor result in?
7. Explain the difference between a credit card and a debit card?
8. What is scarcity?
9. Who was Adam Smith, and what did he do?
10. What are public goods?
11. What is a free rider?
12. Explain the difference between demand and quantity demanded.
13. Why does a demand curve look the way it does?
14. Explain the difference between supply and quantity supplied.
15. What is the difference between a fixed and variable cost?
16. What is the Office of Management and Budget, and what do they do?
17. What is an externality?
18. How can a monopoly be legal?

Pgs. 445 (5-6), 454 (#5), 455 (1-2), 461 (4-5)

Notes/discussion on why nations trade, the effect of trade on an economy, how absolute and comparative advantage are calculated, and what role 'sweatshops' play in a developing nation's economy.

Quiz on vocabulary words/terms from chapters 9 and 10.

Vocabulary words /terms from chapters 13 through 15 - Recession, Depression, Inflation, Deflation, CPI, Unemployed, Unemployment Rate, Misery Index [] Fed, Legal Tender, Central Bank, Bank Run, Monetary Policy, Interest Rate [] Fiscal Policy, Keynesian Economics, Entitlement, Supply-Side Economics

1. What is scarcity?
2. Explain what each of the factors of production are.
3. Explain the relationship between trade-offs and opportunity costs.
4. What is a command economy?
5. What is a market economy?
6. Explain what Adam Smith meant by the 'invisible hand.'
7. What is profit motive?
8. Explain the difference between microeconomics and macroeconomics.
9. Explain what a public good is and give an example.
10. What is a free rider?
11. Give an example of a negative externality and a positive externality.
12. Draw a demand curve and explain why it looks the way it does.
13. Explain what demand and quantity demanded are.
14. What changes quantity demanded?
15. What are complements and substitutes?
16. What are normal goods and inferior goods?
17. Draw a supply curve.
18. Explain what supply and quantity supplied are.
19. What changes quantity supplied?
20. Explain what the following costs are: fixed costs, variable costs, total costs, and marginal costs.

Pgs. 327, 4-5; 335, 4-5; 245, 5-6; 346, 1-2; 349 #35

Articles:  Offshoring Jobs, pgs. 226 - 227 (1-2); Flat Tax, pg. 254 (1-2); Soda Tax, pgs. 258 - 259 (1-3)

Vocabulary words/terms from chapters 9 (SOurces of Government Revenue) and 10 (Government Spending): Incidence of a Tax, Individual Income Tax, Average Tax Rate, Progressive Tax, Marginal Tax Rate, Regressive Tax, IRS, FICA, Payroll Tax, User Fee, Property Tax, Capital Gains, Fiat Tax [] Public Sector, Private Sector, Subsidy, Federal Budget, Budget Deficit, Budget Surplus, National Debt, Cowding-Out Effect, Entitlement

Review 1

1. Identify an item that has an inelastic demand curve.
2. Why is profit motive important to American Free Enterprise?
3. What is open opportunity?
4. Explain the importance of private property rights.
5. What is American Free Enterprise?
6. How are wages determined in the United States?
7. What is the difference between socialism and communism?
8. What is Laissez Faire?
9. Describe what a centrally planned economy is.
10. Failed centrally planned economies have become what kind of economy?
11. List 3 problems associated with traditional economies.
12. What is a factor market?
13. What is a product market?
14. How is profit/loss calculated?
15. What is a command economy?
16. What is the 'Invisible Hand' of economics?
17. What are the benefits of competition?
18. What are markets?

Quarterly Writing Assessment #1 for the 2nd semseter.  This essay assignment counts as a test grade.

Vocabulary words/terms from chapter 7 - Market Structures: Laissez-Faire, Market Competition, Perfect Competition, Monopolistic Competition, Product Differentiation, Nonprice Competition, Oligopoly, Collusion, Price-Fixing, Monopoly, Natural Monopoly, Public Goods, Externality, Price Discrimination

Pgs. 177 (6 and 7), 183 (5 and 6), and 189 (4-6).

Notes/discussion on market structures.  Included in these notes/discussion are perfect competition, monopolistic competition, oligopoly, and monopoly.  Characteristics of each, examples of each, and the effects of a changing marketplace were also discussed.

Test from chapters 4 (Demand), 5 (Supply), and 6 (Prices).

Pgs. 146 (5 and 6), 154 (4 - 6), and 161 (5 and 6).

Notes/discussion on price ceilings and price floors.  Included in the notes/discussion: relationship between quantity demanded and quantity supplied at the new price, examples of price ceilings and price floors, and when/where you would find either a surplus or shortage.

Quiz on vocabulary words/terms from chapter 4 - Demand

Vocabulary words/terms from chapters 5 (Supply) and 6 (Prices and Decision Making) - Supply, Subsidy, Fixed Costs, Variable Costs, Total Costs, Marginal Cost, Total Revenue, Marginal Revenue, Price, Rationing, Rebate, Equilibrium Price, Surplus, Shortage, Price Ceiling, Minimum Wage, Price Floor 

Notes/discussion on supply and quantity supplied.  Also included in the discussion are the reason why the supply curve is upward sloping, the 5 non-price determinates of supply, and the relationship between price and supply and quantity supplied.

Articles from chapter 4 - Pgs. 96 (1-2), 102 (1-2), 110 (1-2), and 115 (1-2) 

Notes/discussion on elasticity of demand.  Included are characteristics and examples of products with an inelastic demand and elastic demand.

Vocabulary words/terms from chapter 4 - Demand;  Demand, Demand Schedule, Demand Curve, Law of Demand, Marginal Utility, Diminishing Marginal Utility, Change in Quantity Demanded, Income Effect, Substitution Effect, Change in Demand, Substitutes, Complements, Elasticity, Elastic, Inelastic, Unit Elastic

Pgs. 95, 4-5; 101, 4-5 & 7; 109, 5 & 8; and 113 #32

Test on chapters 1 and 2.

These notes are from Chapter 4 - Demand.  The notes/discussion include demand v. quantity demanded as well as each of the 8 non-price determinates of demand.  The relationship between price and quantity demanded and demand is also discussed.

Quiz on the vocabulary from chapter 1 - What is Economics?

Vocabulary words/terms from Chapter 2 - Economic Systems:  Economic System, Traditional Economiy, Command Economy, Market Economy, Capitalism, Mixed Economy, Socialism, Communism, Minimum Wage, Social Security, Inflation, Free Enterprise, Voluntary Exchange, Private Property Rights, Profit, Profit Motive, Competition, Consumer Soverignty

Notes/discussion on forms of economic systems - Free Market, Mixed, Centrally Planned, and Traditional Economies were all discussed (characteristics and examples of each).

Pgs. 10 (5-6), 17 (6-7), and 25 (5-6)

Articles on pgs. 11 (1-2), 18 (1-2), 26 (#1 only), and 30/31 (1-3)

Vocabulary words/terms from Chapter 1 - What is Economics?:  Scarcity, Economics, Need, Want, Factors of Production, GDP, Good, Service, Utility, Market, Factor Market, Product Market, Economic Growth, Specialization, Trade Off, Opportunity Cost, Production Possibilities Curve

Notes/discussion on trade off and opportunity costs.  Included in this discussion is an anaylsis of how opportunity cost helps us to determine the true cost of making a decision.

Notes/discussion on the 5 categories of resources/factors of production (land, labor, capital, entrepreuership and time).

Notes/discussion on what economics is the study of.