Study Guide and Study Aids for the Test on Wed. September 22nd

Here is the study guide for the Test on Wednesday, September 22nd

Introduction to Economics and Economic Systems

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 On Loose Leaf paper in your notes section
• 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
• Life Examples of Opportunity Cost Questions (done in class) - remember? Business flyers vs. Vacationers?
• Trade Activity notes
• Karl Marx notes
• Homework - Intro to Economics Lesson #1 homework
• Homework - The Economic Systems homework (p 24-33)
• Homework - Inuit People - A Traditional Economy in Transition
• Class activities – Feudal M&M’s, Standing in Lines (Command), Zapitalism, Fishing Experiment (Tragedy of the Commons) Adam Smith play
• Reading - Maasai Reading - A Traditional Economy
• Reading - Growing up in a Command Economy - Memories from Childhood

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
Tragedy of the Commons

• know from class these definitions (found in looseleaf notes): Economics and Economic System, Scarcity
• The Economic Systems of today - Command, Traditional, Free Market

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) - in loose leaf notes, right?

2. What are the three economic systems of the world today?
     -Be able to describe these
     -Know their characteristics
     -Be able to use examples we used from class...

Expect some questions about Joseph Lekuton (Maasai)and the Romanian girl (Growing Up In A Command Economy) from our readings.

3. List AS MANY important economic freedoms that were available to you while playing 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. (Zapitalism related question) 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. (Zapitalism related question) 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 believe - perhaps make a list/bullet point

9. Are you able to list the Factors of Production and/or the 4 Basic Economic Questions

11. Are you able to list the 6 Characteristics of a Free Market economy? Can you describe each?

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 first quiz you took this year -

14. What is competition and how does it benefit us?

15. What is Profit Motive and why is it so important?

16. What is the Tragedy of the Commons? What does it have to do with private property?

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