UNIT 1 EXAM—Chapters 1, 2, 3 Study Guide Format: Multiple choice: There are 31 questions worth 2 points each. Short response questions: There are nine.( Also worth 2 points) -‐4 are answers to a direct question, such as “what is…?” -‐5 are Document Based Questions (DBQ’s) : 2 editorial cartoons, and 3 paragraph abstracts. You should be able to answer these in two –three sentences. The same rules of writing apply-‐complete sentences, address the facts. Extended response questions: (Worth 10 points each) You will do two. One will be required; you may pick the other one from the remaining bank. You will have directions on how to complete your answers. *********************************************************************** -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐You are responsible for the following content-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ (This not meant to be a complete and comprehensive list; rather, it is meant to highlight some of the more important things to know.) Please feel free to review your notes and your text. All of the vocabulary for each chapter. -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ Please make a careful effort to read and go over chapter three. * Make use of the interactive review in classzone.com and the animations for the circular flow of economic activity. You should be able to discuss the economic systems-‐what are there characteristics; how do they differ, what do they have in common. Be able to describe the circle of economic activities-‐what are the processes that are occurring, what are the markets how does everything originate. Be able to describe the function of government in the economic activities circle. How does it function like a business? How does the government bring in money? What services does the government offer, what does it sell? Think of examples. Carefully review the law of rising opportunity costs. Be able to explain it in your own words. What is the primary disadvantage of a free market economy? What is a free rider? Think of real examples. What are externalities? What are positive and negative examples? What are the characteristics of the American free enterprise system? What is open opportunity? What is legal equality? What is the main force or motivation behind free enterprise? What is the global economy? What is globalization? What are examples of globalization? Who benefits from it? What is marginal cost? Marginal benefit? -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ Charts and graphs: Look at charts in chapter two Review the PPC and practice finding the points and determining the opportunity costs of an action. -‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐-‐ Essays/free response questions: Make sure that your answers are well crafted with thorough information and complete sentences with a subject. Address the topic and give the information. Do not list anything, use bullets or Venn diagrams or T charts, except as notes for yourself prior to your written answer. I will not give any credit for an answer that does what I mentioned above. Make sure your work is written in ink and is legible. If you don’t have an erasable pen, bring Wite Out. Write legibly. If your answer requires it, provide labels for what you are describing. Identify it. Possible questions in the question bank: 1 -‐Describe the circular flow of economic activity completely with its elements (Describe how it works) 2 -‐Compare and contrast a command and a mixed economy with examples of actual countries. 3-‐ You are stating a coffee shop –what factors of production would be involved? How would you use them? 4-‐You are starting a new country. What economic system would you have; what would you do? 5-‐Describe the government’s role in a modified free enterprise economy *hint: 3 things 6-‐Describe the differences between opportunity cost and trade-‐off and how they are used in decision making in economics.
© Copyright 2026 Paperzz