EC 201 Exam 1 Review Outline

EC 201 Exam 1 Review Outline - i) Price Ceiling ii) Price...

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EC 201 Review Outline Exam 1 I. Introduction A) The Economic Problem B) Macro vs Microeconomics II. Production Possibilities of an Economy A) The PPF 1) Attainability vs Productive Efficiency 2) Scarcity and Returns to Scale 3) Opportunity Cost 4) Marginal Cost 5) Changes in the PPF III. Markets A) The 'Perfectly Competitive' Market B) Demand 1) Law of Demand 2) Demand vs Quantity Demanded 3) Changes in Demand i) Income- Normal and Inferior Goods ii) Prices of Other Goods- Substitutes and Compliments C) Supply 1) Law of Supply 2) Supply vs Quantity Supplied 3) Changes in Supply i) Cost of Inputs-labor and capital ii) Technology iii) Outside Options to the firm D) Market Equilibrium 2) Changes in the Market-Demand, Supply and both 3) Market Regulation (Part 1)
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Unformatted text preview: i) Price Ceiling ii) Price Floor iii) Market Surplus and Shortages IV. Elasticity A) Price Elasticity of Demand 1) Midpoint Formula for Percentage Changes 2) Inelastic & Elastic Demand 3) Determinants of Elasticity of Demand 4) Total Revenue & Elasticity B) Cross Price Elasticity 1) Compliments & Substitutes C) Income Elasticity of Demand 1) Normal & Inferior Goods D) Elasticity of Supply V. Governments and Markets (Regulation part 2) A) Taxes 1) Production & Sales Tax i) Buyer's Price and Seller's Price 2) Equivalence 3) Government Revenue 4) Tax Incidence and Elasticity B) Subsidies VI. Welfare and Surplus A) Consumer Welfare 1) Consumer Surplus B) Producer Welfare 2) Producer Surplus C) Dead Weight Loss 1) Taxes & Subsidies D) Efficiency of the Competitive Equilibrium...
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This note was uploaded on 04/25/2008 for the course ECON 201 taught by Professor C.liedholm during the Fall '07 term at Michigan State University.

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EC 201 Exam 1 Review Outline - i) Price Ceiling ii) Price...

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