ECN2802

Fall 2016                                             Review for Exam 1

Dr. Dao

 

·         Central Coordination Problems

·         Methods of Reasoning in Modern Economics

·         Marginal Analysis

·         Microeconomics vs. Macroeconomics

·         Rational Decision Making

·         Positive vs. Normative Statement

·         Marginal Benefit and Marginal Cost

·         Law of Comparative Advantage

·         Opportunity Cost

·         Comparative Advantage

·         Specialization and Exchange

·         Economic Force

·         Market Force

·         Market disequilibrium scenarios: Shortage (Excess Demand) and Surplus (Excess Supply)

·         Equilibrium Price and Quantity

·         Division of Labor and Gains from Specialization

·         Efficiency and Production Possibilities Curve

·         Inefficient and Unattainable Production

·         Shape of Production Possibilities Curve

·         Shifts of the Production Possibilities Curve

·         Principle of Increasing Marginal Opportunity Cost

·         Economic Model

·         Law of demand

·         Demand Schedule and Demand Curve

·         Change in Quantity Demanded (Movement Along the same Demand Curve) vs. Change in Demand (Shift of Demand Curve)

·         Shift Factors Affecting Demand

·         Law of supply

·         Shift Factors Affecting Supply

·         Effects of Demand and/or Supply Shifts on Equilibrium Price and Quantity

·         Adam Smith and Self-Interest