Review for ECO 165
Test #1
Students are expected to
read & understand their book & class notes. Students should also review
the relevant questions contained on the comprehensive finals from the spring & fall of 1997.
Here is a checklist containing most of the topics you should have mastered:
- Economics defined; macro vs.
micro
- Models & abstraction
- Scarcity & choice
- Opportunity
costs
- Marginal analysis &
economic decision making
- What are fixed costs? Why are
they irrelevant to decision making?
- Factors of production
- Three Economic questions
- Efficiency criteria
- Allocative
mechanisms
- Circular Flow Diagram
- Factor market and Goods
market
- Roles of Government,
Households & Businesses in the economy
- Consumer & Producer
Surplus
- Market Failures (Monopoly,
Public Goods, Externalities)
- PPF
- assumptions
- On, inside, &
outside the PPF
- Effect of scarcity
- Effect of specialized
resources
- Meaning of the
absolute value of the slope
- What causes it to
shift
- Trade-off between
current and future consumption (producing consumer goods or capital
goods)
- Demand: definition & law
of
- Quantity demanded
- Shifters
- Substitutes vs.
complements
- Normal vs. inferior goods
- Income &
substitution effects
- Supply: definition & law
of
- Quantity supplied
- Shifters
- Equilibrium
- Surpluses, shortages
& how they are eliminated.
- Disequilibrium; price
floors & ceilings
- Changes in equilibrium;
shifting both curves at once
Elasticity
- Price
Elasticity of Demand
- Definitions
- Calculations
(using mid-point formula)
- Graphs
- Total
Revenue
- Determinants
- Price
Elasticity of Supply
- Cross-Price
Elasticity
- Income
Elasticity