MIDTERM

Question 1

What exactly is economics?

Answer 1

Economics is the study of how people seek to satisfy their needs and wants by making choices.

Question 2

What are compliments and substitutes?

Question 3

How does the equilibrium point shift when the market changes? (You must
understand the reasons that cause shifts and how quantity demanded and/or price
change)

Question 4

You must understand what makes up the factors of production

Question 5

You must understand the significance of a PPC graph and the possible points
around it and reasons that it may change into account.

Question 6

6. You must know the 4 market structures, the differences between them and
   recognize examples of them.

Question 7

You must know the difference between the 2 different circular flow models and the
components of each.

Question 8

You must know how business cycles function over longer periods of time.

Question 9

9. You must understand what is included and NOT included in U.S. GDP.

Question 10

What are the differences in horizontal and vertical mergers?

Question 11

You must be able to read and interpret a table showing the marginal product of
labor.

Question 12

Why are anti-trust laws needed?

Question 13

What is the thought process behind issuing patents?

Question 14

What is the difference between a CEO, a CFO, and an owner?

Question 15

You must understand how to fill out a Production Cost Chart and interpret data
from it.

Question 16

You must understand what public goods are and are not.

Question 17

What is the law of demand and what goes into it?

Question 18

What are the different types of partnerships? What are the differences?

Question 19

You must be able to interpret a market demand schedule.

Question 20

What is the law of supply?

Question 21

What is the importance of opportunity cost?