Download ECON 2301 Spring 2003

Microeconomics
ECON 2302
Spring 2010
Marilyn Spencer, Ph.D.
Professor of Economics
Review: Chapters 1-5
Announcement: Bonus Extra Credit
4 points possible
 When: Thursday, February 18, 7 p.m.
 Where: CI 102 (this room)
 Who: Dr. Andy Piker, professor of philosophy, will speak
on steps to resolve conflicts.
 What:
Sign in when you arrive
Email a summary (approx. 100 words) of how his main
points involve making choices to
[email protected], before class, February 25.
Announcement: Bonus Extra Credit
4 points possible
 When: Tuesday, February 23, 4-5 p.m.
 Where: Oso Room in the UC (Room 221)
 Who: Barry C. Lynn, Director of the Markets, Enterprise,
and Resiliency Initiative, and a senior fellow at the New
America Foundation, will speak on “Cornered: The New
Monopoly Capitalism and the Economics of Destruction.”
 What: RSVP ahead of time at RSVP form
Sign in when you arrive
Email a summary of his main points (approx. 100
words) to [email protected], before class,
March 2.
Exam 1, February 18
 Chapters 1–5
Study PPT slides.
Study assigned end-of-chapter questions.
Study with a friend.
 Test format:
Short answer questions, problem solving, graphing &
multiple choice
Questions include definitions, theory & applications –
Expect graphing and tables of numbers.
75 minutes
Test Resources Used
Please check any applicable box concerning "fees" for test
resources you plan to use DURING the exam:
 3x5 card with notes, 5 test points
 textbook and notebook, 15 test points
 information from others, 100 test points

Will NOT use additional resources*
* Two (2) points will be added to your score if you choose to
NOT use any of these test resources.
Name (please print):____________________
ID #: ______________________ (some portion of ID#)
Signature: ___________________________
Chapter 1 MAJOR TOPICS
 Rational behavior
 Responding to incentives
 Positive & normative analysis
 Scarcity
Chapter 2 MAJOR TOPICS
 Production possibilities frontier model
 Points on curve
 Points below curve
 Points above curve
 Growth





Opportunity cost
Marginal opportunity cost
Trade-offs
Comparative advantage v. absolute advantage
Circular flow of income model
Chapter 3 MAJOR TOPICS
 Law of demand
 Variables that affect demand
 Law of supply
 Variables that affect supply
 Shortage or surplus
 Changes in demand & supply that change the
equilibrium
Chapter 4 MAJOR TOPICS
 Consumer surplus
 Producer surplus
 Price floors
 Price ceilings
 Effects of a tax
 Effects of a government subsidy
Chapter 5 MAJOR TOPICS
 Positive externalities
 Negative externalities
 Causes of externalities & market failures
 Coase Theorem
 Common resource problem
 Public goods
 Free rider problem
Before February 23, pre-read Ch. 6, including:
 Review Questions: p. 200, 1.1-1.4; p. 202, 2.1 & 2.2; p.
204, 4.1 & 4.2; pp. 205-6, 5.1; p. 206, 6.1; and “If demand
for orange juice (OJ) is inelastic, will a rise in the price of
OJ increase or decrease the revenue received by orange
juice sellers?” (1st edition: 1-10, p. 193); and
 Problems and Applications: p. 202, 3.3; p. 206, 5.2; p.
202, 2.4; p. 207, 6.6; and “During 2001 in Afghanistan,
the Taliban outlawed growing poppies, from which
opium is made. Opium output fell by 95%, and the price
of opium rose from 2,000 rupees/kg to 40,000 rupees/kg.
What was the price elasticity of demand for opium in
Afghanistan?” (1st edition: 2, 3, 5, 6 & 18, pp. 193-195).
Any questions?