Download Final Exam Review Sheet

Final Exam Review Sheet
The final exam is Tuesday, December 17th, from 8-10am. The final exam will have a portion that is multiple
choice, a portion that is short answer, which will involve at least one graph, and a portion that is true, false,
explain. Good practice questions can be found on the textbook website. You should be familiar with the
following concepts. The exam will be closed book and closed note, but you may bring one sheet of notes to the
exam (two sided). You will need to bring a green 882 scantron form and a number 2 pencil to the exam.
1. Define economics, microeconomics, and macroeconomics, labor, capital, human capital, monopoly, perfect
competition, oligopoly, monopolistic competition.
2. Production Possibilities Curve
3. Opportunity Cost
4. Marginal Principle
5. Principle of Diminishing Returns
6. Spillover Principle & Externalities
7. Reality Principle
8. Using the Consumer Price Index, (CPI), to calculate real (inflation adjusted) changes in prices.
9. Absolute Advantage (for international trade too)
10. Comparative Advantage (for international trade too)
11. Circular Flow Diagram
12. Centrally Planned Economies
13. Laissez-faire Economies
14. Supply and Demand. Causes of shifts in supply and demand curves.
15. Market Equilibrium
16. Impact of price floors (minimum wages) and price ceilings (rent control) on market, quantity supplied and
quantity demanded.
17. Using equations to calculate market equilibrium.
18. Finding consumer surplus, producer surplus, social surplus, and dead weight loss on a graph.
19. Impact of a unit tax on a supply and demand diagram.
20. Negative externality of production (pollution).
21. Calculating elasticity of supply and demand.
22. Maximize utility under a budget constraint.
23. Costs of production, marginal cost, average total cost, fixed costs, etc.
24. Calculating economic profits.
25. Perfect competition, using market and firm graphs and illustrating changes in demand or costs of
production.
26. Short run and long run.
27. Labor markets, marginal revenue product of labor, minimum wages
28. Profit maximization using the marginal principle
29. The shut-down rule.
30. Monopoly
31. Marginal revenue for monopoly, and why it is less than price.
32. Social cost of monopoly.
33. Natural monopoly and average cost pricing.
34. Monopolistic competition in the short run and long run.
35. Oligopoly and game theory.
36. Nash Equilibrium, for stage games and for repeated games.
37. Price discrimination
38. Anti-trust policy.
39. Public Goods
40. Social Security, pay as you go
41. Health insurance
42. Poverty in the United States
43. Asymmetric Information
44. Moral Hazard
45. Adverse Selection
46. Terms of Trade