ReviewSheet_203(Midterm)

ReviewSheet_203(Midterm) - Review Sheet-203 Midterm I...

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Review Sheet-203 Midterm I. Introduction a. What do we study economics? Fundamental concept? b. What roles do assumptions play in building an economic model? Ceteris paribus means? c. Define opportunity cost II. Individual choice a. How do individuals make decisions according to our model of Individual Choice? i. Marginal Utility 1. What is it? 2. Why diminishing 3. Value of the Marginal Product ii. Decision rules iii. What does E, P, V stand for? iv. How do such things as scarcity, the future and risk affect our decisions? b. Know how to calculate marginal utility and total utility. III. How markets work a. Supply and demand i. How does price affect the quantity supplied and demanded?—Why is supply upward-sloping and demand downward sloping? ii. Equilibrium condition—excess supply and excess demand eliminated b. Shifting supply and demand—What shifts the curves and in what directions (i.e. shift variables of supply and demand )? c.
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ReviewSheet_203(Midterm) - Review Sheet-203 Midterm I...

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