first midterm - Role of competition Scarcest resources are...

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INDV 103 Sections 62 & 63 Spring 2007 Professor McBrearty REVIEW FOR FIRST MIDTERM EXAM Nature/Method of Economics: People act “rationally” – meaning? Why do “wants” exceed “have”? Definition of Economics “Economic perspective” Why do People rarely buy more than one newspaper daily? Fundamental problem of economics Economizing Problem: Scarce resources – land, capital Production possibilities curve: What is it? Why bowed out from origin? Graph of a PPC (7 questions): Opportunity cost What is attainable/what not? What is efficient/what not? Concave/convex & why? Economic Systems: Pure Capitalism: Describe chief characteristics Production decisions are guided by? How output distributed? Not a function of prices
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Unformatted text preview: Role of competition Scarcest resources are employed conservatively/sparingly – why? Type of markets in circular flow diagram “Consumer sovereignty” Pure Command Som: Information flows in pyramid model How do production objectives agree? Demand and Supply: Relationship b/t P and Qs, Q D Shape of Demand Curve Reasons for D curve to shift Substitute/complementary goods Normal goods/inferior goods Rationing function of prices Table (P, Q D , Q S ): Equilibrium Price Surplus/Shortage Effect of surplus/shortage Graph (D and S Curves, Various Prices) Equilibrium Surplus/shortage Highest price consumers willing to pay Table with Prices, Q D and Q S Seating capacity Surplus/shortage of tickets Ticket scalping...
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This note was uploaded on 10/21/2009 for the course INDV 103 taught by Professor Mcbrearty during the Spring '08 term at University of Arizona- Tucson.

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first midterm - Role of competition Scarcest resources are...

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