ECON 102 Final CWRU

  • 4 Principles

  • Opportunity Costs (shown with BC or PPF)

  • Budget Constraint

  • PPF

  • Marginal Cost and Marginal Benefit (maximizing utility/profits)

  • Demand/Supply Analysis (using determinants of Demand and/or Supply)

  • Shortage/Surplus

  • Price Elasticity of Demand and its determinants

  • Income Elasticity of Demand

  • Cross-Price Elasticity of Demand

  • Price Elasticity of Supply and its determinants

  • Price Ceilings and Price Floors

  • Quantity Controls -- Quotas and Mandates

  • Taxes and Subsidies graphs and calculating Ps, Pb, Buyer burden/benefit, Seller burden/benefit, Tax Revenue, Subsidy Cost

  • Efficiency (Welfare Analysis): CS, PS, DWL with government intervention

  • Comparative Advantage and Absolute Advantage

  • Negative Externalities

  • Positive Externalities

  • Rational Rule for Buyers

  • Rational Rule for Sellers

  • Rational Rule for Markets

  • Coase Theorem

 

New since Exam 3

  • Rational Rule for Society

  • Solutions to Negative and Positive Externalities

  • Public Goods

  • Common Resources

  • Tragedy of the Commons

  • Accounting Profit and Economic Profit

  • Long Run vs Short Run economic definition

  • Perfect Competition Profit Maximization

  • Imperfect Competition Profit Maximization

  • Monopoly graph

  • Monopoly welfare (CS, PS, DWL)

  • Entry and Exit Decisions in the Long Run

  • Long Run Equilibrium (Zero Economic Profit outcome)

  • How Monopolies Form: the various types of Barriers to Entry

  • Market Structures (definitions of the four and monopoly graph)

  • Basics of game theory (solving a basic matrix game)

  • Prisoner's Dilemma game and meaning