Test#1 Study Guide

The test will consist of 20 questions each worth 5 points. You will have one attempt to take the test. Once the clock starts, you must finish the test. You will be unable to save and continue later. 

 The test covers Modules 1, 45, 4, 5, 6, 7, and 13 

The test will open this Thursday and close on Sunday at 11: 59 pm. 

The following are a list of topics to study for the test:

• Opportunity cost.
• Macro vs. Micro economics.
• Positive vs. Normative economics.
• The Business Cycle, know how to define and properly identify points.
• Inflation vs. deflation vs. price stability.
• Absolute vs. comparative advantage.
• Competitive market.
• Law of demand vs. Law of supply and the relationship between Price and Quantity.
• Movement along the demand curve vs. shifting the demand curve.
• Factors that cause the demand curve to shift.
• Normal vs. inferior goods.
• Market equilibrium.
• Factors that cause the supply curve to shift.
• Know what happens to equilibrium Price and Quantity when there is an increase in demand.
• Know what happens to equilibrium Price and Quantity when there is a decrease in supply.
• Know what happens to equilibrium Price and Quantity when there are simultaneous shifts in supply and demand.
• Price ceiling vs. price floor.