This preview shows pages 1–3. Sign up to view the full content.
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
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Documentiii.
excise tax incidence: legal incidence
≠
economic incidence; latter depends
on elasticities of supply and demand
3.
Consumer theory
a.
Point of consumer theory: tools for analyzing consumer demand behavior, in
particular, why demand slopes down
b.
indifference curves
c.
budget lines: Income M = p
A
A + p
B
B; mechanics of plotting budget lines
d.
MRS
AB
= p
A
/p
B
: tangency condition describing optimal choice along budget line
e.
derivation of optimum bundle (or whole demand curve): solve simultaneously the
two previous equations
This is the end of the preview. Sign up
to
access the rest of the document.
 Fall '11
 Rubin
 Economics

Click to edit the document details