ECN2802

Fall 2009                                             Review for Exam 1

Dr. Dao

 

·         Opportunity cost

·         Marginal changes

·         Incentives

·         Market economy

·         Markets: prices

·         Communism

·         Invisible hand

·         Government: Property rights

·         Market failure

·         Externalities

·         Economic models

·         Circular-flow diagram

·         Factors of production

·         Capital

·         Production possibilities frontier: opportunity cost

·         Shortages vs. surpluses

·         Equilibrium

·         Externalities: efficiency

·         Standard of living

·         Productivity

·         Inflation

·         Economists

·         Competitive markets

·         Perfect competition

·         Normal goods

·         Substitutes vs. Complements

·         Expectations

·         Market demand

·         Demand curve