Review Sheet for Exam 1 SP20 PDF

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Exam 1 Review Sheet ...

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ECO 2023 Review ffor or Exam 1

Exam 1 is T Tuesday uesday uesday,, F February ebruary 11 This is a list of the main points of the class material. It should help you in preparing for the exam. It is important to know definitions, how to do the problems, and what your work means. You should study your note outlines, old assignments, LaunchPad, FlipIt, and the book. Good Luck! CH1: Economics and Economic R Re easoning Economics Scarcity Commodities The economy 3 big questions Economic reasoning Economizing Marginal analysis The economic decision rule Opportunity cost Forces influencing economic outcomes Invisible hand Economic theory Economic models Positive statement Normative statement CH2.1: Economic System Systemss Types of economies Role of government Property rights and resource ownership Coordination of economic activity How they answer the big 3 questions Primary resource allocation Motivation and work incentives Why has there been movement in both directions on the economic system spectrum? What type of economy is the US? Explain. Households Firms 2 types of markets Circular flow diagram- what the arrows represent (money, good, services, factors, etc.)

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CH3: Supply and Demand Quantity demanded Demand schedule Demand curve Law of demand Ceteris paribus Relative price Law of diminishing marginal benefit Quantity supplied Law of supply Supply schedule Supply curve Law of increasing costs Find market equilibrium (Graphically, Numerically, and Algebraically) Disequilibrium in the market Excess supply-what this does to price, QD, QS Excess demand-what this does to price, QD, QS Scalping Inefficiencies and costs Costs and benefits Changes in quantity demand (QD) Changes in demand (D) Determinants of demand-what they are and what happens graphically when these change Changes in quantity supplies (QS) Changes in supply (S) Determinants of supply-what they are and what happens graphically when these change When both curves shift what happens to Price Quantity CH4 & CH13: Market F Failure ailure Allocative efficiency Consumer sovereignty What causes market failure? Why?

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