REVIEW the Final Cumulative Test Review Sheet No books, notes, online access, or other materials allowed for the test. . Define Economics. How are benefits and costs used in economic decision making? When have you used this in your own decision making? . What is the difference between Micro and Macro Economics? . What are the main benefits of competition in our economy? . Define or explain opportunity cost? Give examples. Define or explain marginal analysis? Give examples. . What is the law of demand? . What is the law of supply? . Draw and explain the supply and demand graph for a product. Why is equilibrium stable at the market clearing price? e N o A . What causes an increase in demand? 10. What causes a decrease in demand? 11. What causes an increase in supply? 12. What causes a decrease in supply? 13. When demand increases what happens to price (or value)? 14. When demand decreases what happens to price (or value)? 15. When supply increases what happens to price (or value)? 16. When supply decreases what happens to price (or value)? 17. Draw and explain the supply and demand for labor a. What causes lzbor supply to increase? decrease? i. What happens to the wage from these changes? b. What causes labor demand to increase? decrease? i. What happens to the wage from these changes? 18. Draw, label and explain the basic circular flow model. 19. Draw, label and explain each phase of the business cycle graph. 20. Explain why countries trade with each other. 21. How should countries determine what products to make for trade? 22. What happens to the price of products when a tariff or quota is imposed? 23. What is an exchange rate and how is the rate determined? 24. What changes in supply and demand cause a currency to become stronger or appreciate? 25. What changes in supply and demand cause a currency to become weaker or depreciate