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ECO 202 Fall 2014

Exam 1 Review
Chapter 1
Know defnition of economics 4
Know the paments received ! reso"rce owners #nat"ral reso"rces$ la!or$
capital$ entreprene"rial a!ilit% &
Know defnition of nat"ral reso"rces 4
Know defnition of capital$ accordin' to economists 4
Know wh ho"seholds are so important in economics (
Know defnition of microeconomics )
Know defnition of macroeconomics *
Chapter 2
Know defnition of opport"nit cost 22
Know what a s"n+ cost is and impact in ma+in' economic decisions 2,
Know defnition of comparative advanta'e 24
-hat are some ne'atives associated with speciali.ation/ 2(
Know defnition of !arter 2&
Know importance of mone as a medi"m of exchan'e 2&
Chapter ,
0ow has the role of women in the wor+force chan'ed since -orld -ar 11/ ,(
Know defnition of "tilit ,(
-hat is the lar'est so"rce of personal income in 23 43/ ,5
Know the cate'ories of personal income expendit"res ,5
Know defnition of a cotta'e ind"str ,)
Know the forms of !"siness or'ani.ation in 23 43 and most common ,)6,*
Chapter 4
Know defnition of demand &2
-hat is represented ! movements alon' a demand c"rve/ &4
Know concept of s"!stit"tion e7ect &2
-hat tpe of c"rve represents demand/ &,
Know defnition of s"ppl &(
8e a!le to reco'ni.e shorta'es or s"rpl"ses !ased on data presented (1
Chapter &
Know defnition of 9ross :omestic ;rod"ct #9:;% 50
-hat did ;resident 0oover do in 9reat :epression that prolon'ed its
d"ration/ 52
Know avera'e d"ration of economic expansions and contractions in 23 43 5,
Know defnition of !"siness ccle or economic <"ct"ations 52
Know importance of leadin' economic indicators 5(
Know defnition of a''re'ate demand c"rve 55
Know concept !ehind =dam 4mith>s ?invisi!le hand theor@ )0
Know main premise !ehind Kenes> economic theor )0
Ahe Rea'an administration was +nown for what tpe of economic approach/
Know defnition of in<ation5,
Know defnition of sta'<ation )2
Know expected res"lts of c"ttin' tax rates in s"ppl side economics )2
Chapter (
Know the concept of do"!le6entr 9:; acco"ntin' ))
Know cate'ories of investment$ when calc"latin' 9:; )*6*0
Know how to calc"late total net exports *0
Know lar'est component of a''re'ate expendit"res )*
Know concept of val"ed added to 9:; thro"'h prod"ction *0
Know the p"rpose of st"din' the circ"lar <ow model #reso"rces$ 'oods and
mone <ow% *1
Chapter 5
Know defnition of la!or force 102
Know discrepanc in "nemploment rate comparin' !lac+s to whites 104610&
Know defnition of seasonal "nemploment 105
Know impact of in<ation 110
Know defnition of Cons"mer ;rice 1ndex #C;1% 111