Economics EOC Review – Sem 2 PDF

Review for Economics EOC *Opportunity cost for upgrading the computer lab hardware includes getting new instruments. *Incentives for employees usually include MONEY. Incentives also include who finishes work first being rewarded, people working overtime will be rewarded with overtime (again MONEY)...

Review for Economics EOC *Opportunity cost for upgrading the computer lab hardware includes getting new instruments. *Incentives for employees usually include MONEY. Incentives also include who finishes work first being rewarded, people working overtime will be rewarded with overtime (again MONEY). *Paychecks placed into savings leaks out from the economy, while bank investing money is injected back into economy. *John Maynard Keynes would object to these governmental policies: food exporters can export as much wheat as they want, while in past limited to 50 tons. Entrepreneurs are no longer restricted from importing raw materials. *Total amount of money circulating in economy is money supply. *Substitution effect -> rising price of gold causes people to buy silver instead *Income effect -> when price of gas increases, people drive less *Positive externality -> new factory in a village provides livelihoods for the villagers -> higher level of education, students learn a skill. In their job they use their skills to provide goods and services to others. *Negative externality -> a new factory in a village causes noise pollution *The PPC indicates maximum utilization of available resources * Production curves…. Bike tires (Point D increase by 200 pts/ Point B increase by 500 pts) Business Structures: (concepts to know/understand) Sole Proprietorship, Control, Profits LLC – Limited Liability Corportation: owners are called members, owners are largely free from personal liability and LLC pay their taxes through members’ personal tax returns. Labor: If you’re hurt on job/unemployment insurance pays for recovery up to 3 months employee retirement income security act - > health benefit plan Fair labor standards act -> minimum wage and overtime pay Occupational safety and health act (OSHA) -> job site inspections Growth: Physical capital to increase productivity -> purchasing licensed copies of an innovative new animation software. PPC Shifts left: include – Several multinational companies close their factories b/c changing economic climate and Government $$ is illegally taken by increasingly corrupt politicians & bureaucrats. PPC Shifts right: A mass e-learning imitative makes education cheaper and accessible to all. New economic policies facilitate the signing of a new international trade agreement. Government & Economy: The Federal Reserve’s primary goal is to ensure enough money and credit are available to sustain economic growth without causing inflation. Sherman Antitrust Act – designed to break up corporate trusts and return private competition to the marketplace. The Food & Drug Administration deals with anything related to pharmaceuticals. The Federal Trade Commission (FTC) -> protects consumers from unfair business practices Federal Communication Commission (FCC) -> promotes development of broadband services /facilities National Highway Traffic Safety Admin. (NTSA) -> reduce injuries/deaths cause by vehicle accidents. *Know the steps for contractionary fiscal policy: gov’t increases tax rate, consumers have less $$ to spend, producers manufacture less goods, inflationary pressure decreases Graph: Excess number of apartments is 19 Types of taxes: Progressive tax -> tax rate increased when you receive a promotion and a raise Regressive tax-> When two people who make different amounts of $ receive same break in sales tax. Proportional tax-> When two people who make different amounts money both pay 15% of their income Money & Federal Reserve: View money as indivisible. And credit cards are used primarily to withdraw money from a checking account. When there is an excess of money in Federal Reserve and they pay interest on excess $ that banks hold, this leads to inflaction Market Structures: Start up costs can influence how quickly a business is up and running. These include having funds to build a factory. Surplus is the difference between a country’s exports and what they are worth. TERMS: Free trade – lower trade barriers and eventually remove them completely Protectionism – Applying quotas on all industrial products except those used as a resource Trade War – when a country violates a trade agreement resulting in imposing of retaliatory tariffs. Foreign exchange rate – value of one nations currency in terms of another nations currency High currency value – decrease in exports Higher interest rates in a country – more foreign investment in that country Cultural imperialism – when more people adopt foreign clothing Lower currency value -> increase in exports NAFTA: North American Free Trade Agreement: US / Canada / Mexico only *You need to know factors that affect global trade between two countries (ie India/China) Resource found near base of a volcano: Metal ore Aerial images of Brazilian forest: Plant new trees and test soil quality Hypothetical labor market would require a $15 hour wage level minimum Social media – allows you to review products on line Need for financial security – divine motivational theory Biological factors for personalities include height, athletic ability and debating Environmental/cultural factors for personalities include: holding a job for extended time, saving money Magnuson-Moss Warranty Act – directs manufactures/sellers to detail service coverage, terms & exclusions on products Compost piles allow for to dispose of food waste effectively and be proactive on environmental conservation To validate two different types of research you use concurrent validity Financial service companies partner w/businesses to provide credit & they charge higher interest on loans If you cash out CD early – pay a high fee Stock portfolio –compare your stocks performance to benchmarking index such as S&P 500