1. Define Economics.
2. What are the three interrelated features of the economic perspective?
3. What is the economic meaning of the statement “there is no such thing as a free lunch”?
4. Explain the difference between macroeconomics and microeconomics.
5. What are some examples of positive and normative economic statements?
6. What are the four factors of production? Give examples.
7. What is an opportunity cost? Give an example.
8. Define production possibility curve. What does it illustrates? What does a point inside, outside, and on the curve mean? What causes the production possibility curve to shift to the right?
9. What are the characteristics of the four economic systems? Give examples.
10. Define comparative and absolute advantage.
11. Explain the circular flow diagram. In the circular flow model what are the income flow and expenditure flows?
12. What does the ceteris paribus assumption means?
13. What are the three fundamental questions of Economics?
14. What is the largest component of household spending and household income?
15. What are the three types of business organizations? Which one is the most numerous and which one brings in the most revenue?
16. What are the largest components of expenditures and income for the federal government, and the state and local governments?
17. What were Karl Marx, John Keynes, and Adam Smith contributions to Economics?
18. What are a graph, variable, positive relationship, and negative relationship?
19. Discuss the history of tariff and trade agreements.
20. What is the difference between export and imports? What are the major exports and imports in the U.S. and their major trading partners?
21. Define the economic methodology.
22. What are the functions of government?
23. Be able to answer questions from the video: “Fear of Boom or Bust” and “Wall Street, Money Never Sleeps.”
24. Any material from your textbook may be on your exam.
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