econ002springexam1reviewoutline - First Exam Review Outline...

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First Exam Review Outline This outline is essentially just a list of topics, refer to the class notes for each particular section, the textbook, and, or previous homework assignments for more specifics. A. Thinking like an Economist - Production Possibility Frontiers. a. Difference between Macroeconomics and Microeconomics b. Difference between Positive and Normative statements c. Circular Flow Model - page 23 in textbook, also shown in class d. Definition of PPF e. Know how the PPF demonstrates scarcity by representing a boundary between possible production combinations and impossible production combinations. f. Know how PPF demonstrates opportunity cost: 1. Be able to find opportunity cost of moving from one position on PPF to another 2. Be able to understand how a bowed out PPF implies that the per-unit opportunity cost of increasing the production of a good increases as more of that good is produced. g. Be able to understand why points on PPF are efficient, while points inside are not
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This note was uploaded on 04/02/2008 for the course ECON 002 taught by Professor Mcleod,markpehlivan,ayseozg during the Spring '08 term at Pennsylvania State University, University Park.

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econ002springexam1reviewoutline - First Exam Review Outline...

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