Economics EOC Review

Economics EOC Review

• Opportunity Cost: Upgrading computer lab hardware involves costs of new instruments.
• Incentives: Employee incentives often include monetary rewards for finishing first or overtime work.
• Paychecks: Money put into savings leaves the economy, while bank investments inject money back in. John Maynard Keynes would oppose government policies limiting grain exports.
• Total Money Supply: Total is defined as the circulating money in the economy.
• Substitution Effect: Rising gold prices cause people to buy silver instead.
• Income Effect: Higher gas prices lead to less driving.
• Positive Externalities: New factories create job opportunities in villages through skill development and services.
• Negative Externalities: New factories can cause noise pollution in villages.
• Production Possibility Curve (PPC): PPC illustrates maximum resource use. Bike tires (Point D increased by 200 pts), and Point B (increased by 500 pts).

Business Structures

• Sole Proprietorship: Profits, but owners can face personal liabilities.
• LLC (Limited Liability Corporation): Profits, members are not held personally liable. LLC taxes are calculated based on members' personal returns.
• Labor: Employee job-related injuries are covered by unemployment insurance up to three months.
• Employee Retirement Income Security Act (ERISA): Sets standards for health benefit plans.
• Fair Labor Standards Act: Sets minimum wage and overtime regulations.
• Occupational Safety and Health Act (OSHA): Oversees job site inspections.

Economic Growth

• Physical Capital: Purchasing innovative animation software improves productivity.
• PPC Shifts: Factors like multinational factory closures and corrupt government actions can lead to economic decline.

Government & Economy

• Federal Reserve: Aims to maintain stable money and credit for economic growth without inflation.
• Sherman Antitrust Act: Designed to break up corporate monopolies and maintain competition.
• Food and Drug Administration (FDA): Regulates pharmaceuticals.
• Federal Trade Commission (FTC): Protects consumers from unfair business practices.
• Federal Communications Commission (FCC): Promotes broadband service development.
• National Highway Traffic Safety Administration (NHTSA): Reduces vehicle accidents.
• Fiscal Policy: Government increasing taxes leads to consumers spending less, less production and less inflationary pressure.

Taxes

• Progressive Taxes: Tax rates rise with income levels - receive promotion, raise.
• Regressive Taxes: People with various income levels receive the same sales tax break.
• Proportional Taxes: Everyone pays a constant percentage of their income.

Money & Federal Reserve

• Money as Indivisible: Money is considered a whole unit, not divisible.
• Credit Cards primarily used to withdraw cash from checking accounts.
• Inflation: Excess money in the Federal Reserve leads to inflation. Reserve pays interest on excess funds that banks hold.
• Market Structures: Startup costs influence business operations, such as building factories

Terms

• Surplus: Difference between a country's exports and what they are worth.
• Free Trade: Reduced barriers for trade.
• Protectionism: Imposing quotas on imports except for raw resources.
• Trade War: Imposing retaliatory tariffs when a country violates a trade agreement.

Other Key Concepts

• Foreign Exchange Rate: Value of one currency in terms of another.
• NAFTA (North American Free Trade Agreement): US, Canada, and Mexico.
• Global Trade Factors: Factors affecting trade between countries, resource location near a volcano(metal ore), and aerial images of Brazilian forests (plant trees and testing soil)
• Labor Market: Hypothetical labor markets minimum wage of $15 per hour.
• Financial Security: Divine motivational theory; Financial security is important.
• Biological & Environmental Factors: Factors that affect personality development including height, athletic ability, debating, environmental, and cultural factors.
• Magnuson-Moss Warranty Act: Covers coverage details and exclusions of services.
• Compost Piles: Allow for effective food waste disposal.
• Concurrent Validity: Validating two different research types.
• Financial Services: Credit agreements; Interest on loans; early withdrawal fees on CDs.
• Stock Portfolio: Comparing stock performance to indices like the S&P 500.