A Selective Outline of Important Topics in Economics 102
Prof. Douglas Blair
Exam
:
Friday, December 18, 12:00 to 3:00, College Avenue Gym Annex
Review sessions
:
Thursday, December 10, 1:10 to 2:30, Scott 205
Thursday, December 17, 6:30 to 3:00, Milledoler 100
Office hours:
Thursday, December 10, 2:30 to 3:40, NJ 423 (Ms. Zhang)
Monday, December 14, 12:30 to 2:00, NJ 423 (Ms. Zhang)
Tuesday, December 15, 12:30 to 2:00, NJ 427 (Ms. Sapra)
Wednesday, December 16, 10:00 to 1:00, NJ 303a (DB)
1. The Problem of Economizing
a.
scarcity and choice
b.
opportunity cost
c.
comparative advantage: relation to opportunity cost; basis for gains from
trade
2.
Supply and demand
a.
methods of analysis
i.
geometric: intersection of S, D curves
ii.
algebraic: simultaneous solution of S, D equations
b.
comparative statics: effect on P, Q when S or D
↑
or
↓
c.
Role of prices as signals
to firms and consumers
d.
Price elasticity of demand
i.
methods of calculation: which one to use depends on the data at hand
(1)
point elasticity
(2)
elasticity by midpoint formula
ii.
relationship of price elasticity of demand to TR or total expenditure
e.
Other elasticities
f.
interventions in workings of price mechanism
i.
price ceilings and floors
ii.
black markets