ECONOMICS REVIEW SHEET—Fall 2019/2020 FINAL EXAM

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- General Agreement on Trade and Tariffs

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!!!