Complete the Mandatory Orientation (& sign up on Remind) by January 17thst
Below you will find the learning objective, concept, idea, term, or theory that each question on the exam will cover. Each number in the following list refers to the question number on Exam 1 that will test your knowledge of that specific learning objective. Each of these topics/learning objectives is discussed in the textbook in the order that they are listed below. A much better understanding can often be attained by working through MyEconLab assignments connected to any of these objectives.
After reading this chapter, you should be able to:
Define economics and understand the importance of the fact that there are unlimited wants but only limited resources available to satisfy them.
Distinguish the difference between microeconomics and macroeconomics.
List and discuss the three basic economic questions every society must answer and the two antithetical answers to these questions of which existing societies are a mixture.
Demonstrate the importance of rationality in economic analysis.
Explain what economists mean by self interest and the important role it plays in economic models.
Explain the importance of models and understand the role of assumptions in economic models.
Explain the concept of behavioral economics and bounded rationality.
Distinguish the difference between positive and normative economics.
Know how to construct a graph.
Distinguish the difference between direct and inverse relationships.
After reading this chapter, you should be able to:
Define and understand of the concept of scarcity.
Explain and distinguish between the factors of production.
Explain the difference between wants and needs and the concept of economic goods.
Explain the idea of opportunity cost.
Draw a graph a production possibilities curve.
Discuss the idea of efficiency and inefficiency
Explain the idea of increasing additional cost.
Discuss economic growth and the trade-off between consumption and capital goods.
Explain absolute and comparative advantage.
Discuss specialization, division of labor and trade between nations.
After reading this chapter, you should be able to:
Explain the law of demand.
Discuss the difference between money prices and relative prices.
List and explain the other determinants of demand besides the price of the good or service.
Explain the difference between changes in the quantity demanded and changes in demand.
(The following learning objective is listed twice to indicate that there will be two questions on this topic.)
Illustrate the difference between changes in the quantity demanded and changes in demand.
Explain the law of supply.
List the determinants of supply.
Distinguish between changes in the quantity supplied and changes in supply.
(The following learning objective is listed twice to indicate that there will be two questions on this topic.)
Explain the process of determining market equilibrium quantity and equilibrium price.
Illustrate the process of determining market equilibrium quantity and equilibrium price.
After reading this chapter, you should be able to:
Discuss the essential features of the price system.
(The following learning objective is listed twice to indicate that there will be two questions on this topic.)
Evaluate the effects of changes in demand and supply on the market equilibrium price and quantity.
Evaluate the effects of changes in demand and supply on the market equilibrium price and quantity.
List the various methods of rationing.
Explain the effects of price ceilings.
Discuss the economics of rent control.
Explain the effects of price floors.
Illustrate how agricultural price supports work with Demand and Supply curves.
Illustrate the economics of the minimum wage with Demand and Supply curves.
Discuss the various types of government-imposed quantity restrictions on markets.