ECN 221 Microeconomics

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ECN 221 Microeconomics

• First Exam Review

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Chapter 1 7

• The study of Economics, Definitions
• Scarcity, Trade-offs
• Efficiency versus Equality
• Opportunity Costs
• Inflation and Unemployment

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Chapter 2 8

• Economics as Science Scientific Method
• Purpose of models
• Rationale for assumptions
• Circular Flow Model
• Factors of Production
• Capital

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Chapter 3 11

• Production Possibility Frontier, Problems
• Opportunity Cost Measurements (e.g. like the
  farmer-rancher)
• Comparative Advantage
• Specialization
• Rationale for Trade

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Chapter 4 10

• Demand, Supply, Equilibrium
• Competitive Markets, Monopoly
• Deriving the Market Demand Curve
• Individual Demand and Market Demand analysis of
  tabular schedules, graphs

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Chapter 5 8

• Price Elasticity of Demand
• Elastic, Inelastic PED
• Necessities versus Luxury Goods (elasticities)
• Formula for computing PED (basic)
• Interpreting demand schedules (slopes)

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Chapter 6 6

• Price Ceilings, Price Floors impact on D, S
• Impact of Taxes on S, D, Elasticity
• Graph problem
• ceiling, floor, and equilibrium
• surplus or shortage, binding, non-binding