Download Test #1

UMN Microeconomics (ECON 1101)
8/24/15
Q1 Final Concept Review
Quiz #1
Chapters 1-3
1-3 Fundamentals:
Scarcity
Trades-offs
Costs
Opportunity Costs
Sunk Costs
Productions Possibilities Frontier
Circular flow of Economic activity
Law of increased opportunity costs
Absolute advantage
Comparative Advantages
“Law” of Comparative advantage
Demand/ “Law” of demand
Supply/ “Law” of Supply
The Tragedy of the Commons
Division of Labor
Specialization
Plus all Password and Textbook and in-class terms & concepts
Test #1 (1-7)
4.
Utility
Utility analysis
Total monetary utility
Marginal utility
“Law” of diminishing marginal utility
Marginal analysis
Optimal Purchase Rule (MU=P)
Consumer’s & producer’s surplus
Normal & inferior goods
5.
Price elasticity of demand (%Q  %$)
Unit elastic & inelastic demand curves
Complementary & substitute goods
Cross elasticity of demand
Quiz #1 AND
chapters 4-7
6.
Short & long run
Fixed, variable & total cost
Total, average & marginal physical products
“Law” of diminishing marginal returns
Marginal revenue product
Optimal quantity of input price (MRP = P of input)
Input substitution
Marginal rule for input substitution & the “Law” of diminishing returns
Total, average & marginal cost curves
Total fixed cost (TFC) & average fixed cost (AFC) curves
Economies of scale
7.
Optimal decision
Total, average & marginal revenue
Accounting, Economic & Normal profit
Marginal profit
MR = MC rule
Optimal decisions
Quarter Final (1 - 9)
Quiz #1, Test #1 AND
8.
Key Aspects of 4 Different Markets:
chapters 8 & 9
Accounting profit v. Economic profit v. Normal profit
Perfect Competition: firm & industry supply curve
Optimum Output for Maximum Total Profit
MR = MC
MR – MC = 0
MP = 0
Slope of Total [X] curve = Marginal [X] curve
Short-run equilibrium (P=MC) & long-run equilibrium (P=MC=ATC)
9.
Efficient allocation of resources
Laissez-faire
Input-output analysis
P = MU
MC = P
MC = MU
Perfect Competition in the Short-Run
NOTES: