![](../images/lanenam4.gif)
EconUSA
Telecourse
Study Guide for FINAL EXAM
Section I - New Material
CHAPTER 7
- For multiple choice questions, know the
following definitions & the concepts :
- The definition, nature and effects of
inflation
- Different types of inflation: creeping versus
runaway inflation
- How inflation is measured
- The Consumer Price Index (CPI)
- Real income versus nominal income
- The impact of inflation on lenders, savers,
taxpayers, and output
- Demand-side and Supply-side
inflation
- NAIRU
CHAPTER 21
- What are external diseconomies?
- How does the understanding of external
diseconomies clarify the analysis of the economic cause and impact
of pollution?
- What is the distinction between economic and
social costs? Why is this distinction important?
- What are the goals of regulations or public
policies toward pollution and environmental quality?
- What is the relation between economic growth
and pollution?
- Review the article in the packet: "Addressing
Environmental Externalities".
CHAPTER 25
- What is economic growth? How is it
measured?
- Thomas Malthus' explanation of the economic
growth?
- The effect of investment on
growth.
- The role of human capital formation in
economic growth.
- Public policy in promoting economic
growth.
CHAPTER 26
- The definition and characteristics of public
goods. (Don't confuse public goods with public
services).
- The role of government in the
economy.
- The purposes of the tax system.
- The principles of taxation.
- The differences of excise, income, property
and sales taxes.
- What determines who pays a tax?
- Review the article, Tax Shift, in the
packet.
CHAPTER 27
- Know the definition of comparative advantage
and how it differs from absolute advantage. (Comparative advantage
questions are about half of the questions from this chapter)
- Know what tariffs and quotas are.
- The arguments for and against tariffs and
quotas.
Section 2 - Review
Material
CHAPTER 2
- The basic tasks of the an economy.
- Supply and Demand (approximately 10 to 15
questions)
- Equilibrium
- How the market distributes
resources.
- How the market determines what to
produce.
- The limitations of the price
system.
Section 3 - Short Answer Essay
Questions
- Supply and demand, especially the basic
definitions: Supply, quantity supplied, Demand, quantity demanded,
equilibrium, Law of Demand, Law of Supply.
- Article on Environmental
Externalities
- Articles on Inequality
- Articles on taxation
- The article, The Capitalist Threat", by George
Soros