Econ Exam 4 PDF

Ch. 4 Supply and Demand (KNOW EVERYTHING IN THIS CHAPTER) 1. Def. and Concepts. 2. Difference between Demand and Quantity Demand (QD) and how they appear on a graph. 3. How do you create a market demand curve? 4. What is the Law of Demand? 5. Why does a demand curve slope downward? 6....

Ch. 4 Supply and Demand (KNOW EVERYTHING IN THIS CHAPTER) 1. Def. and Concepts. 2. Difference between Demand and Quantity Demand (QD) and how they appear on a graph. 3. How do you create a market demand curve? 4. What is the Law of Demand? 5. Why does a demand curve slope downward? 6. Difference between moving along a demand curve and shifting a demand curve. 7. Difference between "Change in Demand" and "Change in Quantity Demanded". 8. What causes a movement along the demand curve? ***(Remember, if you move upward along a demand curve, that is a decrease in quantity demanded.  If you move downward along a demand curve, that is an increase in quantity demanded.)*** 9. What causes a shift of the demand curve? ***(Remember, if the demand curve shifts to the right, that is an increase in demand.  If the demand curve shifts to the left, that is a decrease in demand.)*** 10. What are the Determinants of Demand and how a change in them will shift the demand curve? 11. Normal vs. Inferior Good 12. Substitutes vs. Complements 13. Difference between Supply and Quantity Supplied (QS) and how they appear on a graph. 14. How do you create a market supply curve? 15. What is the Law of Supply? 16. Why does a supply curve slope upward? 17. Difference between moving along a supply curve and shifting a supply curve. 18. Difference between "Change in Supply" and "Change in Quantity Supplied". 19. What causes a movement along the supply curve? ***(Remember, if you move upward along a supply curve, that is an increase in quantity supplied.  If you move downward along a supply curve, that is a decrease in quantity supplied.)*** 20. What causes a shift of the supply curve? ***(Remember, if the supply curve shifts to the right, that is an increase in supply.  If the supply curve shifts to the left, that is a decrease in supply.)*** 21. What are the Determinants of Supply and how a change in them will shift the supply curve? 22. Supply and Demand Together. 23. What is an Equilibrium? 24. How do you determine equilibrium price and quantity?  (Both on a graph and mathematically.) 25. Shortage vs. Surplus 26. What happens to the equilibrium price and quantity if the supply curve shifts, if the demand curve shifts, or if both supply and demand shift***?  (Remember, if both supply and demand are shifting in the same direction, quantity will change but price will be ambiguous or unknown.  And remember, if supply and demand are shifting in opposite directions, price will change but quantity will be ambiguous or unknown.)*** Ch. 5 Elasticity 1. 2. 3. 4. Ch. 14 Production and Costs 1. 2. 3. 4. 5. 6. Ch. 15 Perfect Competition 1. 2. 3. 4. 5. 6. 7. Ch. 16 Monopoly 1. 2. 3. 4. 5. 6. Ch. 10 Externalities 1. Def. and Concepts 2. What is an externality and why is it a market failure? 3. Examples of positive and negative externalities. 4. Analyzing a negative externality in production and how it appears on a graph. 5. Analyzing a positive externality in consumption and how it appears on a graph. 6. What are private costs, external costs, social costs, and how are they related to the social optimum? 7. What are private value, external benefit, social value, and how are they related to the social optimum? 8. What is internalizing an externality? 9. Public policies toward externalities, both positive and negative. 10. What is a Pigouvian tax? 11. Know what Command and Control Policies and Market Based Policies are and examples of each. 12. Private solutions to externalities...including the Coase Theorem. Ch. 11 Public Goods and Common Resources 1. Def. and Concepts. 2. Rival and Excludable and Nonrival and Nonexcludable. 3. What are the four types of goods and examples of each? 4. What is the free rider problem? 5. Why don't private markets supply a public good? 6. Cost-Benefit Analysis 7. What is the Tragedy of the Commons? 8. Why don't private markets supply and maintain a common resource? 9. What are the four government solutions to the Tragedy of the Commons?   The following items may also appear on the final exam.***Studying the worksheets from Blackboard and the tax graph covered in class will greatly prepare you for these items on the exam.*** 1. 2. 3. 4. 5.