Econ chapters 1-5 exam

Unlimited wants and limited resources.

Define Economics

Difference between micro-and macroeconomics

Rationality assumption of economics 

Positive statements and normative statements

Relationship b/w price and Qd.

Relationship b/w price and Qs.

On the vertical axis, what is the direction of movement?

On the horizontal axis, what is the direction of movement?

What is the meaning of Ceteris Paribus?

What is free-riding and give an example?

True or False, we all face the problem of scarcity.

3 fundamental questions, “except”

Federal Government spending “except”

Know the attainable points, unattainable, and inefficient points on a PPC or PPF.

What is the PPC or PPF concave?

PPF or PPC shifting outward to the right because of ……

Factors that will shift or change demand.

Factors that will shift or change supply.

Know inferior goods, normal goods.

Know the definition of relative price. What is the relative of A in items of B when A=100 and B=120?

If Y and Z are complements, what happens to the demand for Z if the price of Y goes up?

If the Pepsi price goes up, what happens to the demand for Coca-cola (Coke)?

What is a free rider problem?

What is the theory of public choice?

Know the consequences of the Price Ceiling.

Know the ways the government corrects negative externalities.

How will the higher price of crude oil affect the supply of eggs in the market?

Know the sign of a demand equation.

Know the sign of a supply equation.

How the government can correct positive externalities,

How the government can correct negative externalities

From the minimum wage diagram, how will you know how many workers were employed?

Define opportunity cost.

The market is in equilibrium. What happens if demand goes up? Or What happens if demand goes down?

What is government-sponsored goods?

What are government-inhibited goods?

What are the points inside, outside, and along with the PPC or PPF?

Why is a PPF or PPC concave?

Economists are social scientists.

Scarcity and shortage are not the same.

Know all the factors determining (shifting) supply.

Know how to compute consumer surplus.

Know the price floor and the examples.

Know the price ceiling and the examples.

In a price ceiling, how will you know how many units are demanded?

Define externality.

What is the primary difference between public good and private good?

The economic functions of the Government include, 

Define production.

difference between a market-based economy and a command economy 

Factors of Production?