ECON+2200+2025+SPR+First+Exam+Coverage

Exam Information

• University: University of Nebraska at Omaha

• Department: Department of Economics

• Course: Economics 2200, Principles of Microeconomics

• Term: Spring 2025

• Professor: Catherine Y. Co

• Exam Date: February 20, 2025 (Thursday)

• Exam Review Session: February 19, 2025, 10:30 AM–12:00 NOON, MH 119

  • Alternative meeting time available upon request.

Exam Coverage

• Readings: Unit/Chapters 1 – 3 (relevant sections from the textbook)

• Review Material: All lecture notes, assigned problems in the textbook, in-class exercises, and preparatory assignments.

• Question Types: Multiple choice and short answer questions.

Key Concepts for Study

1. Definitions and Data Interpretation

• fin.gdpgr: GDP growth (in percent)

• fin.gnipc: Gross National Income per capita (in US dollars)

• pov.poverty: Percent of the population living in poverty at $1.90 a day

• pov.gini: Measure of income inequality

• pov.9010.share: Relative income share of the top 10% to the bottom 10%

2. Hockey-stick Growth

• Analyze explanations for growth and flat periods.

3. Impact of Businesses

• Assess how businesses influence individuals' lives.

4. Government Policies

• Explore the impacts on entrepreneurs, businesses, and individuals.

5. Malthusian Trap

• Understanding the concept and its implications.

6. Economic Growth and Capitalist Institutions

• Investigate the relationship between economic growth and capitalism.

7. Dynamic Capitalism

• What conditions make capitalism dynamic?

8. Technological Innovations

• Discuss the first and second great unbundling and its effects on economic activities.

9. Escaping the Malthusian Trap

• Solutions and strategies for overcoming the trap.

10. Economic Decision Making- Key concepts: Economic cost, opportunity cost, economic rent.

11. Numerical Examples- Focus on economic decision-making calculations.

12. Trade Modeling- Individual Level & Country Level: Gains from specialization and trade.

13. Numerical Examples- Work on examples related to specialization and trade.

14. Absolute vs. Comparative Advantage- Key differences and their significance in economics.

15. Firms’ Technology Choice- Production Function: Isoquant and properties.- Cost Function: Isocost and properties.- Factor Intensity: Definition and application.

16. Numerical Examples- Work on examples involving firms’ technology choice.

17. Additional Reading- Re-read: The Economist (2025). Robocrop.

Further Topics and Formulas

18. Normative vs. Positive Economics

• Definitions, examples, and applications.

19. Constrained Decision Making

• Decision making under scarcity including:

  • Preferences: Indifference curves and properties.

  • Constraints: Feasible set, feasible frontier, opportunity cost.

20. Marginal Rates

• Marginal Rate of Substitution (MRS): MRS = ∆Y/∆X

• Marginal Rate of Transformation (MRTS): MRT = ∆Y/∆X

Useful Formulae

1. Economic Decision Making

• Condition 1: Benefit > Economic cost

• Condition 2: Net benefit > Opportunity cost

• Condition 3: Economic rent > 0 (Economic rent = Net benefit - opportunity cost > 0)

2. Absolute Advantage

• Higher productivity or lower cost in producing a good.

3. Comparative Advantage

• Higher relative productivity or lower relative cost; equivalently a lower opportunity cost.

4. Total Cost Formula

• Cx = (WLx) + (RKx)

• Rewrite the cost function: Kx = (C - WLx)/R

5. Marginal Rates

• For MRS and MRT: understand their calculation and usage in decision making.