Tuesday & Thursday, 24 May

This week the class is engaged in review for the final exam. The final exam is on Tuesday, May 31st.

On Tuesday students were given the following study guide and asked to bring possible questions related to the given topics to class on Thursday.

Final Test Study Questions                                               ____________________________

Economics 2016 (Zartler)                                                  Test: Tuesday, May 31^st

Micro Economics: Supply; Demand; Price / Cost

The components of this system include:

Markets; Consumers; Producers; Law of Demand; Law of Supply; Price Equilibrium; Production Possibilities Frontier; capital investments production costs; opportunity costs; shifts in demand; shifts in supply; fixed costs; variable costs; wants; needs; marginal costs; compliments; substitutes; Economies of Scale; Law of Diminishing Returns.

What factors influence the price of goods (and services)?

What factors influence the supply of goods?

How do demand, supply, and cost interrelate? What happens to the other two when each of these rise and fall?

What factors influence manufacturing of products? How do these factors affect price and how are they affected by price of goods?

Macro Economics: Supply; Demand; Money; Wages; Inflation; Taxes

The components of the system we studied include:
Gross Domestic Product (GDP); Wages; Jobs; Money Supply; Inflation; the Federal Reserve; Taxes. Beneficial and harmful reinforcing cycles. Supply of jobs; supply of labor; demand for labor;

What factors influence sustained growth? What can cause an economy to decline? How can economic growth be sustained? What can cause an economic "bubble"?

How do wages affect GDP? How does GDP affect wages? How do wages interact with inflation? How does inflation contribute to and detract from GDP?

Who should pay how much in taxes for what? What is the role of political philosophy in tax policy?

Personal Financial Choices

The components of the system we studied include:
Budgets; loans; investments; leveraged investments; credit; credit scores; banking; ledgers; compounding interest; mortgages; stocks; mutual funds; treasury bonds.

What factors ought one to consider when setting a personal budget and spending decisions?

What factors ought one to consider when making decisions about banking?

What is a “credit score,” how is it important; what steps should one take with credit to provide for the best possible outcome?

What are the advantages and pitfalls of credit? How does buying a home work? What is the most commonly recommended long-term investment and why? What is considered the safest long-term investment?