Economics R: Review Sheet for 'Fundamentals of Economics' Test
Economics R: Review Sheet for 'Fundamentals of Economics' Test
REVIEW: ECONOMICS R
Key Terms:
Scarcity
Trade-off
Opportunity cost
Goods
Services
Utility
Technology
Capital
Entrepreneurship
Factors of production
Land
Labor
Specialization
PPF Curve
Markets
Marginal thinking
Circular Flow Model
Key Ideas:
- What is economics?
- What causes scarcity?
- What is opportunity cost?
- How is it measured by economists?
- What information is provided by a PPF curve?
- What is the classic metaphor used illustrate nation’s choice between producing military v. consumer goods?
- Who is Adam Smith?
- What is the difference between absolute and comparative advantage?
- How is wealth measured in a free market economy?
- What determines price in a free market economy?
- What are the 3 major economic systems?
- What are the 3 basic economic questions every system must answer?
- What kind of system is most common today?
- What academic disciplines (subjects) study human nature?
- What does the PPF Curve measure? What doesn’t it tell us?
- What are the advantages and disadvantages of the different economic systems?
- What are the components of the circular flow model of the economy and how does a change in condition in one market effect the rest of the economy?