Economics Test Reviews . Unit 1 . Characteristics of the U. S. free enterprise system How does competition influence markets in the free enterprise system? Communist economic system Be able to create a circular flow model Opportunity cost Business responsibilities
Characteristics of the U. S. free enterprise system
How does competition influence markets in the free enterprise system?
Communist economic system
Be able to create a circular flow model
Be able to compare and contrast free enterprise, socialist, and communist economic systems
Advantages and disadvantages of corporations
How does a corporation raise capital?
How can government affect the circular flow model?
Basic economic problem
Production possibilities curve
North American Free Trade Agreement
How does international trade shift the PPC?
Price, quantity, equilibrium price, equilibrium quantity
Be able to draw and interpret supply and demand curves
Why supply and demand curves shift
Non-price determinant of supply and demand
Risks of investment
How to figure net worth
Five Cs of Credit
Benefits and costs of home ownership
How to payoff credit card debt?
Costs and benefits of bankruptcy
How to improve your credit score?
Income tax, excise tax, tariffs
State, local, and federal taxes
How does the government regulate our economy?
How does international trade effect our economy?
Characteristics of economic expansion
Who has the authority to tax?, 16th Amendment
Expansionary and contractionary monetary policy
How do new technologies affect economic growth?
Economic indicators- unemployment rate, housing starts, Consumer Price Index (a measure for inflation), PPI, bankruptcies, Gross Domestic Product, stock market prices
Who owns the Federal Reserve?
What are reasons for the decline of the U. S. dollar’s value?
Pros and cons of barter, currency, credit, and debit cards
Phases of the business cycle
Tight money policy and easy money policy
Functions of money
The Fed’s tools
Federal Reserve System
What happens when the reserve requirement is raised?