Macro Learning Objectives for questions over Exam 1 Form A

 

FALL/SPRING/SUMMER

PCM

 ECON 2302 MICROECONOMICS   

Chapter 1

Below you will find the learning objective, concept, idea, term, or theory that each question on the exam will cover. The numbers in the list refer to the question number on Exam 1 that will test your knowledge of that specific learning objective. You will also find a reference to the page numbers in the textbook, Microeconomics, Explore & Apply: Activebook Version 2.0 where the substance of each question is explained. A much better understanding can often be attained by working through the "active graphs" and "smart graphs" connected to many of these objectives in the online material.

 

After reading this chapter, you should be able to:

  1. Describe how scarce resources and unlimited wants lead to the study of economics. Pages 2-3
  2. Define economics generally and distinguish between microeconomics and macroeconomics and between positive and normative economics. Pages 3-4
  3. Identify three basic economic questions that all societies must answer. Page 4
  4. Identify the three kinds of economic systems societies must choose among to answer the three basic economic questions and discuss their Key Characteristics and central Organizing Principles, while also explaining the reason and motivations for government involvement in the market place. Pages 4-6
  5. (Same as #4)
  6. Discuss the degree of Personal Freedom under type of economic system, and name some actual economies where these systems are more or less in force. Page 9
  7. Explain the difference between equity and efficiency and why there is frequently a trade off between them. Page 5
  8. Recognize the strengths of the marketplace and discuss Adam Smith and the Invisible Hand. Pages 6 and 12
  9. Understand what a good model is and what assumptions are made by economists in their models, and also define the concepts of “fallacy of composition” and “ceteris paribus.” Page 10
  10. Explain why an economy based on incentives, as opposed to a policy of egalitarianism, is crucial for economic prosperity. Pages 11-13