Unit 1 Review Guide
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
- · What is economics?
- · Wants and needs
- · Goods and services
- · The 4 factors of production
- · Opportunity cost
- · Specialization
- · Productivity
Chapter 2
- · Know the 3 basic economic questions and how they are answered in the 3 different economies
- · Traditional Economic System
- · Market Economic System (Capitalism)
- · The 6 Characteristics of the Market Economy
- · Command Economic System
- · Mixed Economic Systems
- · Standard of Living
Chapter 3
- · Concept and law of demand
- · Income
- · Substitute and complementary goods and how they affect demand
- · How to write and read demand curves
Chapter 4
- · Concept and law of supply
- · Incentives
- · What changes supply
- · Cost of production
- · Effect of technology on supply
- · How to write and read supply curves
Chapter 5
- · What sets prices?
- · Reading and writing supply and demand on a graph
- · Locating the equilibrium price on a graph
- · Surplus and shortage, what suppliers do to change that, and locating them on a graph
- · Inventory