Alexander Biglin - GSE ECON Midterm Review 2021 BY STANDARD.pdf

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ECON Midterm ReviewName:Use notes, slides, book, or other resources to complete this review.FundamentalsSSEF1 Explain why limited productive resources and unlimited wants result in scarcity, opportunity costs, and tradeoffs for individuals, businesses, andgovernments.a.Define scarcity (as an economic term - NOT short supply)-b.Define and give examples (2 for each) of productive resources (factors of production):natural resources (i.e. land)-human resources (i.e. labor and human capital)-physical capital-entrepreneurship-c.Explain the 4 reasons that influence entrepreneurs to take risks.d.Define opportunity cost-e.In economies, who faces and must deal with opportunity cost?f.Summarize this standard (explain the main idea) in at least one sentence.SSEF2 Give examples of how rational decision making entails comparing the marginal benefits and the marginal costs of an action.a.Define:a.marginal cost-b.marginal benefit-b.Explain what rational decisions are, using the terms marginal cost and marginal benefit.Give an example.c.Definea.positive incentives-b.negative incentives-d.How do people, businesses, and governments respond to incentives?e.Summarize this standard (explain the main idea) in at least one sentence.SSEF3 Explain how specialization and voluntary exchange influence buyers and sellers.a.Explain how and why individuals and businesses specialize.b.What is division of labor, and how does it represent specialization?1
c.Explain why both parties gain, as a result of voluntary, non-fraudulent exchange.d.Summarize this standard (explain the main idea) in at least one sentence:SSEF4 Compare and contrast different economic systems and explain how they answer the three basic economic questions of what to produce, how toproduce, and for whom to produce.a.Describe traditional, command, market, and mixed economic systems.Then, explain how each type answers the three basic economic questions.(For the test, also be able to recognize how private ownership, profit motive, consumer sovereignty, competition, and government regulation differin each and how each type of system answers the three economic questions and meets the broad social and economic goals of freedom, security,equity, growth, efficiency, price stability, full employment, and sustainability.)a.Traditional-b.Command-c.Market-d.Mixed-b.Name and describe at least 3 ways scarce resources can be allocated.Make the first one PRICE, as this is most common in a market basedeconomy.a.PRICE-b.c.c.Summarize this standard (explain the main idea) in at least one sentence:SSEF5 Describe the roles of government in the United States economy.a.Describe these roles of government:provides public goods and services:redistributes income:protects property rights:resolves market failures:Why do we rely on the government to do these?

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Term
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