ECN2802
Spring 2014
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