Final Exam Study Guide
This exam consists of 35 Multiple Choice questions on pages 1, 2, and 3,
each worth 4 points. There are 9 Short Answer questions on page 4, each
worth 5 points; and there are 5 Essay Questions on page 5, each worth 13
Your responses to the Short Answer questions should be between
3 and 6 sentences long while your responses to the Essay Questions
should be 2-3 paragraphs long.
The exam questions are related to all of our
TCOs, 1-10. You have 3 and 1/2 hours to complete the exam. It will close
after 3 and 1/2 hours, so remember to SAVE your work frequently, every 10
minutes at least.
Chapters 1, 2, 3, 5 and 6
Weeks 1, 2 and 4
Given a description of a typical business, demonstrate how that business acts
within our economic system to achieve its goals as well as those of society,
along with an understanding of how the future may impact these goals.
Understand the relationship and interaction of supply and demand in
At a price of $45 the quantity is 5 shirts, but if the price were $5 the quantity would
increase to 35 shirts. The Equilibrium point is where supply and demand meet. In
the long run that prie will become the market price
Be able to define, differentiate and provide examples of a market,
command and mixed economy.
them Free market Economy-market determines what goods and services
getproduced, who gets and how how the economy grows CAPITALISM
Command Economies-gorvernment decides-SOCIALISM and COMMUNISM
Mixed Economy-Some made by the government and some made by the market
Define and discuss the fiscal and monetary policy role of the federal
government and its respective agencies.
Fiscal policy- federal governments effort to keep economy stable by increasing or
decreasing taxes or government spending-high tax slow economy, more spending
speeds up economy.
Monetary Policy- management of money supply and interest rates, controlled by
Ferderal reserves. –high interest rate less borrowers, more oney available faster
growth in economy.
List and define the Foundations of Capitalism.
The right to private property-individuals can by,sel, and use land, buildings
machinery, inventions, and other forms of property. Also pass property to children.