Final Review

Econ 201

Yan Cheng

Chapter 1

1. Definition of Economics
2. Definition of opportunity cost
3. Slope
1. Meaning of slope (+,-,increasing, decreasing)
2. Calculate of slope
3. Property of the slope of a cure

Chapter 2

1. opportunity cost
1. definition
2. calculation
3. comparative advantage
2. PPF
1. Definition
2. Meaning
3. Points on/inside/outside the PPF curve
4. Shift of PPF

Chapter 3

1. demand curve
1. movement
2. shift
2. normal good and inferior good; complements and substitutes
3. supply curve
1. movement
2. shift

Chapter 4

1. market equilibrium
1. equilibrium
2. excess demand
3. excess supply
2. elasticity
1. calculation of elasticity of demand

                                                               i.      elastic

                                                             ii.      inelastic

                                                            iii.      unitary elastic

                                                           iv.      perfectly (in)elastic

Chapter 5

1. budget constraint
1. meaning
2. how to draw a BC curve
3. intersection with X, Y axis
4. shift and rotate
2. marginal utility
1. definition and calculation
2. law of diminishing marginal utility

Chapter 6

1. perfect competitive market
2. profit
3. marginal product
1. calculation
2. diminishing marginal return
4. choice of different technology

Chapter 7

1. Table calculation (TC, MC, AC, TR, AFC, AVC…the examples in class, exercise and exam 2)
2. profit calculation
3. curves (MC, ATC, AVC, AFC)

Chapter 8

1. output decision
1. minimize cost point
2. maximize profit point
3. close point
4. LR shut-down point
5. Zero profit point in LR
2. LRAC curve

Chapter 12

1. imperfect competitive
2. monopoly
1. production
2. price

Review materials:

Book, class notes, exercises and mid-term exams are good material for your final exam.

Final Exam will be on April 21, 2002 10:00am—11:30am

The student who can’t take final exam will get a 0 on this exam.

Good luck on your study.