ECO 211 Microeconomics: FINAL EXAM REVIEW

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EXAM REVIEW link on Blackboard

For more final exam review see the EXAM REVIEW link on Blackboard where you will find:

Final Exam Review YouTube Videos by Mr. Clifford - ACDC Leadership

MICROeconomics - 19 Minute Review (19:04)
A good, but quick review of a lot of material covered in our course by Mr. Clifford on his ACDC Leadership YouTube channel. Click on the link above or go to:

NOTE: At first he says that he is doing a review for MACROeconomics, then after completing his "unit 1", which is the same for both macroeconomics and microeconomics, he changes his poster to MICROeconomics. So, everything he discusses except the topics below, could be on our final exam.

Ignore:

  • Per unit and lump sum taxes effect on output
  • proportional and regressive taxes

Microeconomics - Everything you Need to Know (28:54)

Mr. Clifford of ACDC Leadership on YouTube has recently added a longer Microeconomics review video

Ignore:

  • Per unit and lump sum taxes effect on output
  • proportional and regressive taxes
  • Least Cost Rule

 

List of Topics to Review for the Final Exam

The items on the list below are most likely to be what is on the 80-question final exam. The topics in bold print and underlined are especially important. But, anything from the assigned videos and readings could be on the final.

UNIT 1

LESSONS 1a, 1b, 1c, 1d - Introduction and the 5Es

scarcity
productive efficiency
allocative efficiency
economic growth
5Es
how do each of the 5Es reduce scarcity?
ceterus paribus (other-things-equal assumption)
4 types of economic resources (factors of production)

inverse relationaship
direct relationship

economizing problem = necessity of choice

budget line

PPC (production possibilites curve or production possibilities frontier)

Benefit Cost Analysis (marginal analysis)

 

LESSON 2a - The Market System and the Circular Flow Model

economic system
characteristics of capitalism
capitalism and the 5Es
problems (shortcomings) of capitalism

private property
freedom of enterprise and freedom of choice
specialization
barter
consumer sovereignty
dollar votes
"invisible hand"

Circular Flow Model (diagram)

Trade (international trade)

 

LESSONS 3a, 3b, 3c - Supply and Demand (very important chapter)

definition of DEMAND
definition of SUPPLY
law of demand
income effect
law of diminishing marginal utility
substitution effect
law of supply
market equilibrium (equilibrium quantiy and equilibrium price)
non-price determinants of Demnd
non-price determinants of Supply
change in demand
change in quantity demanded
change in supply
change in quantity supplied
complements
substitutes
normal goods
inferior goods
the market system and efficiency

Efficiently Functioning Markets (pp. 93-99)

 

LESSONS 5a, 5b - Market Failures

MSB (marginal social benefits)
MSC (marginal social costs)
what we get
what we want
price ceiling
price floor (support)
market failure
private goods
public goods
rival and nonrival (rivalry and nonrivalry)
exclusion principle (excludability)
free-rider problem
negative externality (spillover cost)
Coase Theorem
positive externality (spillover benefit)
stabilization
market for externality rights / cap and trade

 

UNIT 2

LESSONS 4a, 4b - Elasticity (difficult, but know it)

price elasticity of Demand (most important)

price elasticity of Supply

incidence of a tax
excise tax
efficiency loss of an excise tax

cross elasticity of demand
income elasticity of demand

LESSON 6a - Consumer Behavior

utility
total utility (define and graph)
marginal utility (define, calculate, graph)
budget constraint
law of diminishing marginal utility
find the utility maximizing quantities to consumer
utility maximizing rule

LESSONS 7a, 7b, 7c - Costs of Production

explicit costs
implicit costs
economic vs. accounting profits
normal profit
short run
long run

be able to calculate, define, graph, and explain the graph shape:

increasing marginal returns
diminishing marginal returns
negative marginal returns
law of diminishing marginal returns

be able to calculate, define, graph, and explain the graph shape

long run ATC (LR-ATC)
economies of scale
diseconomies of scale
constant returns to scale
MES (minimum efficient scale)

natural monopoly

UNIT 3

LESSONS 8/9a, 8/9b, 10a, 10b, 11a, 11b - Product Market Models:

characteristics of all 4 product market models
examples of all four market models

Demand and MR curve

profit maximizing rule (MR=MC Rule)

short run equilibrium (table, graph with numbers, graph with letters)

long run equilibrium

allocative efficiency

productive efficiency

dynamic efficiency (all 4 models)

Lessons 8/9a, 8/9b - Pure competition

Lessons 10a, 10b - Monopoly and Regulation (includes part of chapter 18):

Lesson 11a - Monopolistic Competition

Lesson 11b - Oligopoly

UNIT 4 (Anything from unit 4 could be on the final exam, especially the following)

LESSON 12a - Resource Demand

LESSON 13a - Wage Determination (Labor Market Models)

LESSON 20a - Income Inequality and Discrimination

LESSON 22a - Immigration