If you can identify what each of these is and why it is important, you will be well prepared for the final exam.
4 basic questions all economics systems must answer
law of supply
law of demand
equilibrium
graphing
land, labor, capital, entrepreneurial activity
the factors (means) of production
products�goods and services
scarcity
technology
standard of living
opportunity costs
trade offs
types of economic systems
traditional
command
market
mixed
microeconomics
macroeconomics
economic models
�ceteris paribus� (if all things are equal)
circular flow model
public v. private property
consumer sovereignty
competition
specialization
GDP
GNP
Cost
Price
Elasticity of demand, supply
Types of Business Organization
Sole proprietorship
Partnership
Corporation, s-corp
Limited liability
Unlimited life
Ease of transfer
Dividends
Stock exchanges
NYSE, AMEX, Nasdaq
OTC
Stock broker
Discount broker
Specialists
Floor brokers
Speculation
Short selling
Buying on margin
Board of Directors
C.E.O
Underwriters
I.P.O.
Shareholders
Shares
Stock�common and preferred
Discount loans
Short term v. long term debt
Diminishing returns
Economy of scale
Subsidies
Monopoly
Utilities
Unemployment
Inflation
Growth
Interest rates
Minimum wage
Unions
Collective bargaining
AFL & Samuel Gompers
Wagner Act (NLRB)
Fair Labor Standards Act
Goals of Unions
Types of contracts- local, pattern, industrywide
Methods used by unions to influence mgmt and vice-versa
Arbitration
Mediation
Fact finding
Grievance
Certificates of deposit
Savings account (time deposit)
Checking account (demand deposit)
U.S. savings bonds
Credit cards
Commerical banks
Savings and Loans
Mutuals
Credit Unions
FDIC
Federal Reserve System: monetary policy, discount rate, Alan Greenspan
Business Cycle
Recession (contraction)
Depression (trough)
Expansion (recovery)
Peak
Aggregate demand
External debt
Reasons for taxation:
Gov�t
Redistrib wealth
Promote industry
Promote influence behavior
Tax language:
Loopholes
Progressive
Regressive
Flat tax
Personal income tax
Excise
Estate
Social security
Medicare
Property
User
Indirect
Direct
�Fair� taxes
-clarity
-certainty
-simplicity
-efficiency
-flexible
Who pays?
-those who receive benefits
-those able to pay
Characteristics of money:
Durable
Portable
Easily divisible
Uniform
Easily recognized
relative scarcity
stability
Functions of Money
Medium of exchange
Standard of value
Store of value
Gresham’s law
Stagflation
Currency: paper, coin, specie
Federal budget
Structural (mandatory)
Discretionary
Debt v. deficit
Fiscal year
Revenue
Outlays
International trade
Factors: specialization
Distribution of resources
Climate
Availability of land, labor, capital
Demand
Absolute advantage
Comparative advantage
Opportunity costs and margin of efficiency
Politics
Tariffs:
Protective, revenue, specific, ad valorem
Quotas
Currency as a barrier
“invisible barriers”
Gatt
WTO
EU
NAFTA
Multinational corporations
Supply side economics
Monetarism
Marxist socialism
Utilitarian socialism
Utopian socialism
Deficit spending
Affirmative action
Conspicuous consumption
Laissez faire
Social Darwinism
Diminishing returns
Stages of growth
Comparative cost
Iron law of wages
The business cycle
Consumer protection
Review all of the theory notes!!!