Quiz Prep for Wed. 23rd Economics Quiz

Here is the study guide for the Quiz on Wed. 23rd.

Introduction to Economics and Economic Systems
September 23rd , 2008 QUIZ HELPER

What will help you prepare?
Chapters 1 and 2 from the Economics book.
The Free Market reading handed out in class (will be in your reading section in the binder)
ALL NOTES taken in class in your binder
No Such Thing As a Free Lunch - Basic Economic Concepts notes
No Such Thing As a Free Lunch - Factors of Production and the 4 economic questions notes
Opportunity Cost Questions (done in class)
Trade Activity notes
Karl Marx notes
Homework - Economic Systems of the World (Tradition and Command)
Homework - Economic Systems of the World (Free Market)
Class activities – Feudal M&M’s, Standing in Lines (Command), Zapitalism, Adam Smith play


Concepts to Understand
Scarcity Profit trade Opportunity Cost Feudalism Incentive
Goods cost benefit Markets Macroeconomics
Services Competition Wants vs. Needs Profit motive
Microeconomics Entrepreneur Traditional Economic System
Free Market Economic System Command Economic System Bourgeoisie vs. Proletariat

Definitions

Know our class definitions: Economics and Economic System

Economic Systems

Here are some items to help you prepare – if you know these really well – you should be in good shape.
1. What did ADAM SMITH believe in – explain what he believed then…(what was the title of his famous book)
2. What are the three economic systems of the world today? How well do you know them? Can describe them? Very important to understand the details of each system, plus the advantages and disadvantages.
Also, do you remember what it was like for Joseph Lekuton in the traditional economy vs. what it was like for the Rumanian girl in the command economy (these come from our two readings)
3. List AS MANY important economic freedoms that you can from the Zapitalism simulation…
4. What if instead of playing Zapitalism we had played an economic simulation called Zommandism? Yes, this would have been very boring but give me two reasons why. Just think about it, it isn’t hard to figure this one out.
5. We spent some time looking at Feudalism – it was most like which economic system of today? (most like which of the three we learned) -
6. You have purchased many new entertainment systems for your electronics department. The demand for these items is high. However, you find that hardly any of them are being sold.
a. What could be the problem? (hint: it isn’t the quality)
b. What could be your solution?
7. You have purchased enough Ballentine Bowling Balls to fill your store. You are the only retailer in town to stock this wonderful yet exciting new item. What will you most likely do?
8. Who was Karl Marx? What were his economic and political beliefs? Did he write any books explaining his ideas? What did he say?
9. What middleman or place do most retailers go to purchase the items to stock in their store?
10. Do you know your Factors of Production and 4 Economic Questions?
11. How well do you know the Free Market system? Can you name and describe the 6 characteristics of the Free Market System? Be able to discuss each characteristic, using info given in class….
12. Why was the Paper Airplane Challenge such a good activity to introduce and teach the characteristics of the Free Market System?
13. PLEASE EXPECT questions from the material in the previous unit to be on this quiz too…
14. What is competition and how does it benefit us?
15. What is Profit Motive and why is it so important?

This quiz will have short answer, fill-in-the-blank, multiple choice, and essay questions.