Honors Economics

Mr. Crawford

REVIEW
UNIT TWO
FUNDAMENTALS OF ECONOMICS

Structure:

  • 35 Multiple Choice questions (1 point each)
  • 5 Definition questions (1 point each)
  • 1 Brief with Viewpoint Graph (Viewpoint and Brief)  (10 points)

Content:
  • ECONOMIC FUNDAMENTALS:
    • SCARCITY
      • LIMITED AND DESIRABLE
      • CHOICE
    • OPPORTUNITY COST
      • TINSTAAFL
    • PROFIT MOTIVE
      • COST-BENEFIT ANALYSIS
      • EUSR = MSUW
    • RATIONAL THINKING
      • FUTURE INVESTMENT
      • IMPERFECT INFORMATION
    • MARGINAL BEHAVIOR
      • INCENTIVES MATTER
    • TRADE CREATES WEALTH
  • FOUR ESSENTIAL QUESTIONS:
    • WHAT?
    • HOW?
    • WHO?
    • MORE?

  • SOCIAL SCIENCE:
    • POSITIVE/OBJECTIVE
      • FACTS
      • THEORY
        • INDUCTION
        • DEDUCTION
    • NORMATIVE/SUBJECTIVE
      • POLICY
      • MACRO/MICRO
    • FALLACIES
      • POST HOC
      • COMPOSITION
      • DEFINITION
      • BIAS
  • FOUR RESOURCES:
    • LAND
    • CAPITAL
    • LABOR
    • ENTERPRISE
  • THREE SYSTEMS
    • TRADITIONAL
    • MARKET
    • COMMAND
VOCABULARY

 SCARCITY
CHOICE
RESOURCES
CAPITAL
LAND
LABOR
POSITIVE/OBJECTIVE
NORMATIVE/SUBJECTIVE
RATIONING
TRADE-OFFS
OPPORTUNITY COST

 PROFIT
UTILITY
INVESTMENT
MARGINAL
CETERIS PARIBUS
BIAS
POST HOC FALLACY
FALLACY OF COMPOSITION
MICROECONOMICS
MACROECONOMICS
PRODUCTION POSSIBILITIES		 FULL EMPLOYMENT
FULL PRODUCTION
TECHNOLOGY
TRADE
INVENTION
INNOVATION
MASS PRODUCTION
DIVISION OF LABOR
SPECIALIZATION
CAPITALISM
SOCIALISM

Honors Economics

Mr. Crawford

REVIEW
UNIT TWO
THE MARKET SYSTEM

Structure:

  • 35 Multiple Choice questions (1 point each)
  • 5 Definition questions (1 point each)
  • 1 Brief with Viewpoint Graph (Viewpoint and Brief)  (10 points)

Content:
  • THE FOUR FUNDAMENTAL QUESTIONS
  • TRADITIONAL SYSTEMS
    • BARTER

ADAM SMITH

  • GREED
    • PROFIT MOTIVE
  • PRIVATE PROPERTY
  • FREEDOM OF CHOICE
  • MARKETS
  • COMPETITION
  • NO GOVT
    • "LAISSEZ FAIRE"
    • "INVISIBLE HAND"
  • CAPITALISM
    • SPECIALIZATION
    • CAPITAL
    • MONEY
  • CONSUMER SOVEREIGNTY
    • DERIVED DEMAND

  • BUSINESS ORGANIZATIONS
    • SOLE PROPRIETORSHIP
    • PARTNERSHIP
    • CORPORATION
  • CORPORATE FINANCING
    • REINVESTMENT
    • COMMERCIAL PAPER
    • BONDS
    • PUBLIC OFFERING
      • COMMON STOCK
      • PREFERRED STOCK
    • STOCK ANALYSIS
      • FUNDAMENTAL ANALYSIS
        • QUALITATIVE
        • INVESTORS
        • LONG TERM
        • CAPITAL GAINS
        • DIVIDENDS
      • TECHNICAL ANALYSIS
        • SPECULATORS
        • SHORT TERM
        • CAPITAL GAIN
        • QUANTITATIVE
VOCABULARY
TRADITIONAL
BARTER
TRANSACTION COSTS
COINCIDENCE OF WANTS
CAPITALISM
PRIVATE PROPERTY
LAISSEZ FAIRE
ENTREPRENEUR
INVENTION
INNOVATION
MASS PRODUCTION
DIVISION OF LABOR
SPECIALIZATION
CIRCULAR FLOW		 FINANCIAL CAPITAL
CONSUMER SOVEREIGNTY
HOUSEHOLD
RESOURCE MARKET
PRODUCT MARKET
REVENUE
INCOME
WAGES, RENT, INTEREST
BUSINESS FIRM
LIABILITY
SOLE PROPRIETORSHIP
PARTNERSHIP
CORPORATION
BOARD OF DIRECTORS		 CEO, CIO, COO, and CFO
REINVESTMENT
COMMERCIAL PAPER
BOND
PUBLIC OFFERING
UNDERWRITER
STOCK
CAPITAL GAIN
DIVIDEND
FUNDAMENTAL ANALYSIS
TECHNICAL ANALYSIS
INVESTOR
SPECULATOR
SHORT SELL