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Economics Final Exam Study Guide to help
Eco Research (ECON 6397 )
Houston Community College
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Economics Final Exam Study Guide
Do consumers choose what to buy or sell? Buy
What are the factors of production? land, labor, capital, and entrepreneurship
What does self sufficiency mean? “able to maintain oneself without outside aid.” By this strict definition, nearly everyone – in poverty, in middle-class and in upper-class – is not self-sufficient.
Name and describe the types of economic systems. Economic systems can be categorized into four main types: traditional economies, command economies, mixed economies, and market economies.
What is a contract? A contract is a binding promise between two competent parties that is enforceable by law. To be a valid contract, the promise must include an exchange of something of value between the parties.
In the Circular Flow Model, who owns and sells the factors of production? Households
In the Circular Flow Model, who hires and uses the factors of production? In the circular-flow model of an economy, households own all the factors of production. Households earn their income when firms purchase or
rent these factors of production to use them to produce goods and services.
What are the economic goals of the United States? National economic goals include: efficiency, equity, economic freedom, full employment, economic growth, security, and stability.
If population grows faster than what people can produce, what happens to the standard of living? Standard of living refers to the quantity and quality of material goods and services available to a given population.
What is the behavior of buyers represented by? Has many sellers and buyers. No individual seller or buyer has an influence on the market price.
Would a good that is a necessity be elastic or inelastic? Inelastic products are necessities and, usually, do not have substitutes they can easily be replaced with. Since the quantity demanded is the same regardless of the price, the demand curve for a perfectly inelastic good is graphed out as a vertical line.
What does inelastic demand mean? Change in price is so small
What does the price elasticity of demand measure? Price
How does price effect goods that are complements to one another? Increase and demand for the other increases
Is the minimum wage an example of a price floor or price ceiling?
What is market equilibrium?
Where is market price in relation to equilibrium when there is a shortage?
What are the benefits of the price system?
What is a price floor and price ceiling?
What is a price war?
What is an oligopoly?
How is price set in a perfectly competitive market?
What is collusion?
In order for perfect competition to exist, how must buyers and sellers act towards one another?
Why are monopolies reluctant to raise prices too high?
What is a key difference between perfect competition and monopolistic competition?
What is the most common way corporations raise funds?
What is the most common type of business organization in the United States?
What financial instrument represents corporate debt?
What are the advantages to a partnership?
What is an article of incorporation?
Who is the most important decision maker in a corporation?
What does an economist measure to determine the health of the economy?
What is interest?
What is diversification?
What are the reasons people save money?
What are two benefits of saving money?
When is a stock considered to be “blue chip”?
Economics Final Exam Study Guide to help
Course: Eco Research (ECON 6397 )
University: Houston Community College
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