Econ Unit 1 Study Guide

Unit I Studyguide

Helpful Hints: The upcoming quest will take the form of multiple choice, true/false, fill-in-the blank, and matching questions. You will be expected to be able to graph the production possibilities frontier often known as “guns vs. butter”. In order to study for this test, I would recommend looking over your class notes, worksheets from your SSG and from class, outside readings, and your textbook (Chpts. 1-2). All of these materials will help you study for the test. In addition, I have provided a list of key terms and questions. Knowing the significance of these terms and questions (which have been taken directly from many of the questions on the test) will help you prepare for the test but not be the end all, be all, of the test. The test comes strictly from lectures, class activities, homework, and the book.

Absolute Advantage

Adam Smith

Advantages of the Market Economy

Capital

Capitalism

Capital Goods

CELL (what does it stand for?)

Circular Flow of Economic Activity Diagram/Economic Interdependence

Command Economy

Communism

Comparative Advantage

Competition

Consumer Goods

Cost Benefit Analysis

Demand Side Economics

Diminishing Marginal Utility (Austrian School- Carl Menger)

Economic Schools of Thought

Economic System

Efficiency

Entrepreneur/ Entrepreneurship

Externalities

Factors of Production

Goods (durable Goods, Capital Goods, Consumer Goods, Non-durable Goods)

Guns vs. Butter

Incentives

Invisible Hand

Keynesian Economics

Labor

Land

Marginal Costs

Market Economy

Microeconomics

Mixed Economy

Opportunity Costs

Paradox Value

PPF/PPC Graph KNOW HOW TO DRAW

(also know- efficiency; underutilization; and production impossibility)

Production Possibilities Frontier

Scarcity

Supply Side Economics

Three Fundamental Economic Questions:

Thinking on the Margin

Thomas Malthus

TINSTAAFL

Trade-offs

Traditional Economy

Utility

Wealth `

There could be a few questions on The Primary Elections and the National Convention Here’s the slidedeck we used Slidedeck)

What are the 5 goals of a party’s National Convention?

What are primaries? what are caucuses?

What are delegates and how are they part of the primary elections?

Here are links to the various slidedecks for Unit I:

What is Economics?

Basic Economic Terms

Economic Choices and Decisions

Capitalism and Freemarket System