Study Guide for the Final

Study Guide for the Final - Study Guide for Final Exam...

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Study Guide for Final Exam Fundamental Idea of Economics Ten Principles Production possibility curve (efficient, inefficient, impossible points, opportunity cost) Circular-flow diagram (who are buyers and who are sellers of what goods and services in what markets; the direction of flow of goods and services and dollar) Normative and positive statements Law of demand, inferior/superior goods, substitute/compliment goods, shift vs. movement of demand curves, the factors behind the shifts, the law of supply, movement and shift in supply curve, the factors behind shift in supply curve, the equilibrium condition, the effect on equilibrium price and quantity after change in demand and supply Price floor and ceiling (definitions, shortage and surplus, etc.) The effect of tax on supply and demand, tax incidence, burden of tax based on elasticity of supply and demand Identify the area of consumer surplus and producer surplus in a graph with a given price and change in price, total surplus
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Study Guide for the Final - Study Guide for Final Exam...

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