Consumer Economics

Final Exam Study Guide

Economy Unit• Define the following terms:

–Supply

–Demand

–Scarcity

–Opportunity Cost

–Surplus

–Shortage

– Inflation

Economy Unit Cont.

• Briefly explain the difference between needs and wants

Economy Unit

• Explain the following laws: (hint: how do prices affect buying & selling)

–Law of Supply

• Factors that affect this law:

–Law of Demand

• Factors that affect this law:

Economy Unit

• Name and describe the four parts of the business cycle

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Economy Unit

• Name and briefly describe the seven economic goals (Jaczaklonia Activity)

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Economy Unit Cont.

• Identify and describe the four factors of production

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Economy Unit

• Identify and explain the differences between the three types of economies

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Employment

• Explain each of the following roles of a person in our economy (hint: why are they all important)

–Consumer

–Worker

–Citizen

Consumers Beware Unit

• Explain the three different types of advertising and give an example of each

– Consumer

– Selective

– Primary

Consumers Beware Cont.

• Briefly describe what each of the following acts did

–Food, Drug, and Cosmetic Act of 1938

–Wool Products Labeling Act of 1939

–Flammable Fabrics Act of 1953

–Poultry Products Inspection Act of 1957

Consumers Beware Cont.

• Briefly describe what each of the following acts did

– National Traffic and Motor Vehicle Safety Act

of 1966

– Child Protection and Toy Safety Act of 1966

– Fair Packaging and Labeling Act of 1966

– Hazardous Substances Labeling Act of 1960

Consumers Beware Cont.• Briefly describe what each of the following

government agencies is responsible for

– Dept of Agriculture

– Department of Commerce

– Department of Health and Human Services

– Federal Communications Commission

Consumers Beware Cont.

• Briefly describe what each of the following government agencies is responsible for

–Federal Trade Commission

–United States Postal Service

–Federal Aviation Administration

–Federal Bureau of Investigation

Consumers Beware Cont.

• What are the 7 Consumer rights?– – – – – – –

Consumers Beware Cont.• Identify 8 advertising schemes and how

they work– – – – – – – –

Consumers Beware Cont.

• Identify at least 3 private organizations that help consumers–

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Budgeting

• Why use a budget?

• Define the following:–Income–Expenses

• Fixed• Variable

Banking

• Define the following banking terms:

–Reconciling

–Cancelled check

–Debit card

–FDIC

–Outstanding check

–Payee

Banking Cont.

• Who runs the US banking system?

• What are they responsible for?

Banking Cont.• What are the functions of money?

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• What forms can money take?– – – –

Banking Cont.

• Identify and briefly describe the 3 types of special checks?

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Savings

• What is savings?

• What are 3 reasons to save?– – –

Investing

• What is investing?

• Is it the same as saving? Why or why not?

• Can you read a stock line? Indicate that below:

Investing Cont.

• Define the following terms:–Savings account–CD–Stock–Bond–Mutual Fund–IRA–Liquidity

Investing Cont.

• Identify four types of stock– – – –

• Where are stocks traded?

• Who trades stocks?

Investing Cont.

• Identify the advantages of investing in stocks

• Identify the disadvantages of investing in stocks

Credit• Define the following terms:

–APR–Creditor–Co-Signer–Collateral–Character–Capacity–Capital–Finance Charge

Credit Cont.• Identify the advantages of using credit

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• Identify the disadvantages of using credit– – – –

Smart Consumer

• Define the following insurance terms:–Deductible–Premium–HMO–Life Insurance–Umbrella Policy

• Why do we get insurance?

Smart Consumer Cont.

• What are the types of Automobile Coverage?– – – – –

• Which type of coverage is required by law in Illinois?

Smart Consumer Cont.

• How do we get discounts on auto insurance?– – – – –

Taxes• Define the following terms:

–W-4–W-2–Voluntary Compliance–Progressive taxes–Regressive taxes–Proportional taxes–FICA–Medicare

Taxes Cont.• What is a tax?

• By what two ways do we judge fairness of taxes?

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Application Portion

• You will be preparing the following for your written portion of the final:

• Checks, deposits, check register, and

Bank Rec

• A Monthly Budget (Found on SharePoint)

• 1040EZ tax form from a W-2 (1040EZ is

on SharePoint)

Good Luck!! • This study guide will prepare you for

your final exam. We guarantee it. Use your notes, book, worksheets, workbook pages, whatever it takes!! If this is completed, it will be well worth your while.

• Study hard and good luck. • See you for finals!!

-Mrs. J & Mr. Miller