Final Exam Study Guide Flashcards
Define Scarcity
Explain the basic concept of “There is No Such Thing As a Free Lunch”
What are the basic questions of Economics?
Name the four Factors of production
Explain the difference between a capital and a consumer good
Explain the difference between a durable and nondurable goods
Explain concepts around value(Paradox of Value)
Give important notes on the concept of “utility”
Give important notes on the critical book The Wealth of Nations
Give details on the concept of the “division of labor”
Define Trade-Offs
Define Opportunity Costs
Be able to identify a production Possibilities Frontier diagram
Give Examples of traditional economies
Explain a few key characteristics of command economies
Name a few examples of command economies over the ages
How are decisions made in a market economy?
Describe “Capitalism”
Name a few ways in which the US is a mixed economy
Give a few key details on the thoughts and ideas of Karl Marx
Compare and contrast John Maynard Keynes vs. Milton Friedman
Explain Monopolistic competition
Give examples of oligopolies
What US law is associated with the beginnings of regulating monopolies
Explain Comparative advantage
Identify (draw) a demand curve
Explain the marginal utility and diminishing marginal utility
Explain Substitute goods
Explain complementary goods
Explain demand elasticity
Identify (draw) a supply curve
Give details on surpluses
Be able to identify (draw) Equilibrium price/Market Equilibrium on a chart
Explain a few details of GDP
Explain per capita GDP
What is the difference between nominal and real GDP
What is the business cycle exactly
Identify the business cycle on a chart
Explain Recessions
What is the misery Index?
Explain the difference between a recession and a depression.
Name and describe the four characteristics of money
Explain how money can lose value
Function of money: Medium of exchange
Function of Money: Measure of value
Function of Money: Store of value
Explain measuring prices, the CPI, and Market Basket
Describe consequences of inflation
Name and describe 3 types of inflation
Name results of deflation
What is fiscal policy? (21,23)
What is currency?
Differentiate between M1 and M2 money
What is money supply?
Define monetary supply
What is the discount rate?
List problems for many Americans concerning personal finance
Give examples of passive income
Give notes on what a portfolio is
Give examples of payroll deductions
Explain disposable income
Explain discretionary income
Describe the “gig economy”
Explain the benefits of a salaried position
Explain a negative of salaried positions
Name ways the state of NC levies taxes
Explain property taxes
What are payroll taxes for?
Give details on the estate tax
Explain the progressive tax in the US
Explain the arguments for and against the flat tax
Explain the sales tax in NC
Name examples of excise taxes in NC
Explain the argument of sales taxes being “regressive”
Explain details concerning the corporate income tax
Explain “pre-tax deductions”
What are the 401k’s?
Explain and name types of financial goals
What are insurance premiums?
Explain fiscal responsibility
Name types of insurance premiums
What are flexible spending accounts?
In what ways can variable concerns affect spending plans?
What are union dues?
Name important aspects of creating and monitoring a budget
Income vs. Expenses……softball
Needs Vs. Wants……softball
Explain important aspects of spending plans being unique
What are the costs and benefits of renting?
What are the costs and benefits of owning a home?
Explain mortgages
What is an “adjustable rate” mortgage?
What are the costs and benefits of leasing?
Name other types of mortgages
What is PMI?
What is a “fixed rate” mortgage”?
What is APR?
How can credit ratings and down payments affect mortgages?
What is the difference between compound and simple interest?
