Economics Review PowerPoint

Name:Class Period

Command Economy

• Define Collective

• Define Heavy Industry

What is Economics

• Definition:

Why do we make choices?

• Answer:

What are the three economic Questions?

Efficiency

• Define it:

• Provide a Scenario:

• Provide another Scenario:

Production Possibilities Graph

• Draw it • What does the frontier show you?

• What does the graph show you?

What are the three factors of Production?

• Factor #1 ____________

(Write the factor on the line)

• Definition:

• Example:

• Factor #2• __________ (Write the factor on the line)

• Definition:

• Example:

What are the three factors of Production?

• Factor #3• ____________(Write the factor on the line)

• Definition:

• Example:

Scarcity Vs. Shortage

Similarities of Scarcity and Shortage

•

•

Difference between Scarcity and Shortage

• • • •

Answer the following question in RARE formThe similarities between scarcity and shortage are:

Opportunity Cost Vs Trade Off

Opportunity Cost:

• Definition:

• Scenario:1.

2.

Trade Off

• Definition:

• Scenario:1.

2.

Define the following terms

• Guns and Butter• Definition:

• Scenario:

• Thinking at the Margin• Definition:

• Scenario:

What does the Production Possibility frontier show you?

• Answer:

Definition: Characteristics:

Example: Non-Example:

Efficiency

What are KEY ECONOMIC QUESTIONS

• 1.

• 2.

• 3.

Definition: Characteristics:

Example: Non-Example:

Mixed Economy

Definition: Characteristics:

Example: Non-Example:

Command Economy

Definition: Characteristics:

Example: Non-Example:

Traditional Economy

Definition: Characteristics:

Example: Non-Example:

Market Economy

Why do Markets Exist?

• Answer:

Transitioning

• What are the steps in transitioning?

Complete the Circular Flow Diagram• Please complete the ENTIRE DRAWING

• Who owns the factors of Production?• What market are goods and services sold?

Law of Demand

• Draw the law of Demand

• Explain the Law of Demand

Substitution Effect

• Define Substitution Effect

• Example of Substitution effect

• Example #1:

• Example#2:

Income Effect

• Define Income Effect • Example of Income Effect

• Example #1:

• Example #2:

Definition: Characteristics:

Example: Non-Example:

Ceteris Paribus

Define and provide a picture for each

• Normal Good • Inferior Good

Define and provide a picture for each

• Compliments • Substitutes

In RARE for Compare and Contrast Elasticity of Demand and Elasticity of Supply

Definition: Characteristics:

Example: Non-Example:

Inelastic

Law of Supply

• Draw the law of Supply • Explain the Law of Supply

Label the Graph

Surplus Vs. Shortage

Similarities of Surplus and Shortage

•

•

Difference between Surplus and Shortage

• • • •

Answer the following question in RARE formThe similarities between surplus and shortage are:

Supply Shock

• Definition

• Example

Rationing

• When and why was rationing used in the United States?

• Definition

• Scenario

Black Market

• Why are goods sold on the Black Market?

• Definition

• Use the word in a sentence

Adam Smith

• Who is Adam Smith:

• What is his Philosophy?

Karl Marx

• Who is Karl Marx

Analyzing Demand

Average Wages Decline for Workers Around the Country

• How will this information likely affect the demand curve for movie tickets?

Analyzing Demand

1970’s Styles Popular with High School and College

Students

• How will this information likely affect the demand curve for CD’s of disco music?

Analyzing Demand

Fast Food Chain Raises Prices on All Menu Items

• How will this information likely affect the demand curve for the chain’s burgers?

Analyzing Demand

Analysts Predict Video Game Prices to increase Next Year

• How will this information likely affect the current demand curve for video games?

Analyzing Demand

Gas Prices Increase by 200%

• How will this information likely affect the demand curve for new sports utility vehicles?

Farmer Invents New Picking machine-Harvest Apples in

Half the Time

• How will this information affect the market Demand or Supply of red Delicious apples?

Minimum Wage Increased by 25%- Teen Workers to

Benefit Most

• How will this information affect the market Demand or Supply of Downloaded music?

Inflation

• Define it

• What are the effects of inflation?

• List and define the 3 Types of Inflation.

Business Cycle

• Draw and label the business cycle

List the Characteristics of the Business Cycle

• Peak

• Contraction

• Expansion

• Trough

• List the 4 things that impact the cycle

1. 2.

3.

4.

• Explain each item that impacts the cycle

1.

2.

3.

4.

List the Characteristics of the Business Cycle

• Recession • Depression

Types of Unemployment

List the types of unemployment

1. 2. 3. 4.

5.

• Provide a scenario for each

Trade Barriers

• List the types of trade barriers–

– – –

Effects of Barriers

• List the effects of barriers– – – – –

NAFTA

• What is NAFTA • What countries are a part of NAFTA

Definition: Characteristics:

Example: Non-Example:

GDP

GDP Continued

• List the 2 ways GDP is calculated

• List the 2 types of GDP

Definition: Characteristics:

Example: Non-Example:

Inflation

What are the affects of inflation?

Fiscal Policy

• Expansionary Policy

• What happens to government spending

• What happens to taxation

• Contractionary Policy