Economics Final Exam Study Guide
Manufactured goods needed to produce other goods and services are called what? Capital goods 2.
The study of economics is important because it enables us to make choices. 3.
What is GDP? Gross Domestic Product
What is a production possibilities frontier used for? Showing all the possible combinations of any two goods and services that can be produced using available resources and technology. 5.
Know the four factors of production and be able to recognize examples of them. (2) Land, labor, capital, entrepreneurship 6.
be able to analyze a PPF. (2)
be able to recognize examples of specialization and division of labor. 10.
Know the factors that can cause a shift in a PPF (2) technology and resources 11.
What is the purpose of government in a command economy? To make all economic decisions 12.
The U. S. is an example of a market economy.
Know the social and economic goals. (2) Equity, freedom, stability, security, growth 15.
What is voluntary exchange?
Know the three pure types of economic systems and be able to recognize examples. Traditional, command, market 17.
What is the difference between a general partnership and a limited partnership? General partnership—all partners have equal responsibility, limited partnership—at least one partner is a silent partner 18.
What is the difference between a horizontal merger and a vertical merger? Horizontal merger combines companies that produce the same product under one large company. Vertical merger—the company owns all of the factors that go into producing the product. 19.
Know the advantages and disadvantages of a general partnership. (2) advantages—easy to start, specialization, shared losses--- disadvantages—personality conflicts, shared profits, hard to raise capital 20.
Know the advantages and disadvantages of a corporation? Advantages—easy to raise capital, limited liability, disadvantages—hard to start, limited decision- making 24. Be able...
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