Exam 1 - Chapters 1-10 Wheaton - Econ 1312 with Dr. Wheaton...

Econ 1312 with Dr. Wheaton
16 February 2015
*Note: Focus on Chapters 8-10
Chapter 1
 What is scarcity?
 What is efficiency?  What is equity ?  What is opportunity cost?  What is rationality ?
 What is Marginal ?
Chapter 2
 What is the Production Possibility Frontier (PPF) ? *graph. Also should the
consumption possibilities on a PPF graph.
 What are Positive Statements?
 What are Normative Statements?
Chapter 3
 What is Absolute Advantage ?

 What is Comparative Advantage ?
 What is Imports versus Exports ?
 What are the gains from trade and specialization ?
Chapter 4
 What is the Market?
 What is Supply (S) and Demand (D) *graph?
 Define the following: Law of Demand, Quantity demanded (Q
d
), Demand (D),
shifts in Demand (Table 1)


 Quanitty that consumers want to buy of a good, at a specific price
o Demand (D) 
 All of the quantities demanded by buyers/consumers at different prices
 Define the following: Law of Supply, Quantity supplied (Q
s
), Supply (S), shifts in
Supply (Table 2)



 What are Substitutes? What are Complements?
 Illustrate the
 Define the following: Equilibrium price (P
e
), Equilibrium Quanitity (Q
e
), changes
in equilibrium (Table 3)