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Unit 1 Study Guide

1. Define State of Nature. How did people look in the state of nature according to Locke and
Hobbes?

2. How did Locke and Hobbes differ in their beliefs on the structure of government?

3. What are the three purposes of government?

4. What are some examples of a public good? How do we pay for public goods?

5. What was the original dilemma? Provide 1-2 current events that exemplify that dilemma.

6. What is the modern dilemma? Provide 1-2 current events that exemplify that dilemma.

7. What is the Tragedy of the Commons?

8. What two compromises were made to pass (ratify) the Constitution?

9. The Preamble is the __________________________ of the Constitution. The Articles give

_________________________________ to the government, and the Amendments are

____________________________________ made to the Constitution over time.

10. Write and explain the meaning of two phrases from the Preamble.

11. Understand the basic concepts of democracy (worth of the individual, equality of all person,
majority rule/minority rights, necessity of compromise, individual freedom) enough to answer a
multiple choice question or to explain what they mean in one sentence.

12. What was Madison arguing for/supporting in Federalist #51?

Name:
Unit 1 Study Guide
13. Understand the six Constitutional principles (republicanism, popular sovereignty, limited
government, separation of powers, federalism, checks and balanced) enough to answer a
multiple choice question or to explain what they mean in one sentence.

14. Memorize what PACED stands for and be able to fill out a chart using the PACED model.

15. Understand the seven economic principles (scarcity forces tradeoffs, costs vs. benefits, thinking
at the margin, incentives matter, trade makes people better off, markets coordinate trade,
future consequences count) enough to answer multiple choice questions.

16. What is an economic enigma? Provide an example and explain it using one of the seven
economic principles.

17. How does scarcity differ from a shortage?

18. Productivity=output/input (I’ll give you a math problem using this on the test!)

19. Perpetual resources vs. renewable resources vs. non-renewable resources (provide examples)

20. Land + labor + capital + entrepreneurship = goods and services (memorize this!)

21. Give an example of the law of diminishing marginal utility.

22. What is opportunity cost? Explain this by citing a decision you made this week/month and the
opportunity cost of that decision.

23. Look over your production possibilities curve practice worksheet. I can guarantee that you will
have a PPF question on your test, asking you to graph the curve and analyze it (opportunity
cost from moving from one point to another, point of underutilized economy, etc.)