1. The law of demand states- when the price increases, the quantity demanded will ___________.

When the price decreases, the quantity demanded will _______________.

1. The law of supply states- when the price increases, the quantity supplied will ___________.

When the price decreases, the quantity supplied will _______________.

1. Hot sauce and Ketchup are substitutes. The price of Hot sauce increases, the demand for Ketchup will (increase / decrease).

Which way will the demand curve shift? (left / right) Draw the new demand curve.

1. Provide a complement for the following items:

car- __________________ bread-__________________ shoes-_______________

1. Provide a substitute for the following items:

car-___________________ pen-____________________ television-____________

1. Plot the points for the demand curve and label the line D1.

Demand Schedule #1

Price Quantity

$9.00 1

$6.00 3

$5.00 4

$2.00 6

$1.00 7

Demand Schedule #2

Price Quantity

$9.00 3

$8.00 4 Plot these on your graph above, and label it D2

$5.00 6

$4.00 7

$1.00 9

Does a shift from D1 to D2 reflect an increase or a decrease in demand? _______________

Identifying the determinants of demand. You have seen have how an increase in demand is depicted on a graph by a shift in the demand curve.

• When the demand curve shifts upward and to the right, this is indicative of an increase in demand.
• When the demand curve shifts to the left, this is indicative of a decrease in demand.
• Factors that result in a change in demand are the determinants of demand.

Complete the table below. For each determinant of demand:

• indicate whether demand will increase or decrease;

Determinant of demand	Demand increases or decreases?
Population increases
Population decreases
Increase in most peoples' income
Decrease in most peoples' income
Price of substitute increases
Price of substitute decreases
Price of complementary good increases
Price of complimentary good decreases
Product becomes a popular fad (change in taste of buyers)
Product is now out of fashion (change in taste of buyers)
There is an expectation that the price of the product will soon fall
There is a fear that the economy will go into a recession where many firms will fail and unemployment will increase

Draw the PPF and answer the questions. You may use a separate sheet of paper if necessary.

______Production Alternative______ Types of Production A B C D E
Crocs	0	14	18	28	57
T-Shirts	60	38	29	25	0

1. Draw a production possibilities curve for Crocs and T-Shirts using the data above.

1. Label the points where the economy would be underutilized (U) and unattainable (S).

1. What is the opportunity cost of moving from point C to point E and what are you losing?
2. What is the opportunity cost of moving from point D to point E and what are you losing?
3. What is the opportunity cost of moving from point B to point A and what are you losing?

Taxes

1. What is a flat tax and what is the other name for it?

1. What does a progressive tax do?

1. What does a regressive tax do?

Car Mechanic Gross Income: $45,350/year

1. Using the tax bracket below, what is the net income for the car mechanic?

Progressive Tax Plan

Mark "X" next to the row that matches the yearly income.	Proposed Progressive Plan	Calculate your tax. For example, $10,000x10%=$1,000 in tax.
	10% on income up to $25,000
	20% on income between $25,000 and $34,000
	25% on income between $34,000 and $44,000
	30% on income between $44,000 and $80,000
	40% on taxable income over $80,000

Business

1. Explain what an entrepreneur does.

1. What are the 4 characteristics of a monopoly?

1. What are the 4 types of monopolies?

1. What is an oligopoly?

1. What are the two types of competition when businesses compete?

The FED and other Government Organizations

1. Who controls monetary policy?

1. Who controls fiscal policy?

1. What are the goals for both fiscal and monetary policy?

1. What is the pyramid of the FED? Why is it important to understand the different levels of this pyramid?

1. Who protects us from fraud?

1. What are the four phases of the business cycle?

1. What is the importance of the business cycle?

1. What are the four functions of money and explain each one.

Find the comparative advantage

	Number of Worker Hours to Produce One crate of cheese	Number of Worker Hours to Produce One barrel of olives	Number of Additional Worker Hours to Produce One Barrel of olives Instead of One crate of cheese
France	3	7
Greece	6	9

Set up a Circular Flow Model with a scenario