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Final Exam Study Guide

1. What 3 things does an economic system decide for society?

2. What is the characteristic of a “Hands-On” economy?

3. What makes Socialism different from Communism?

4. Name a “Hands Off” system?

5. Whose “hands” are we referring to?

6. What is Laissez Faire?

7. Explain “Profits”.

8. What happens to price when there is an oversupply? Explain.

9. Which type of Economic System exhibits Pure Competition?

10. Explain why a Monopoly is bad for consumers?

11. How do Consumers cast votes in a market economy?

12. Contrast the Roles of: Producers and Consumers

13. How many sellers exist in Pure Competition?

14. What are two major advantages to consumers that result from Pure Competition?

15. How many sellers in a Monopoly?

16. What are two ways consumers suffer when a Monopoly exists?

17. Explain the two characteristics of inflation.

18. Explain Transfer Payments.

19. What are the three characteristics of money?

20. Explain the Gold Standard.

21. What president ended the Gold Standard?

22. What is it meant by fiat?
Example: The U.S. dollar is a fiat currency.

May 21, 2010admin
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