FALL/SPRING/SUMMER
PCM
ECON 2302 MICROECONOMICS
Chapter 4
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.
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After reading this chapter, you should be able to:
- Interpret
how demand represents marginal benefit. Page 54
- Interpret
how supply represents marginal cost. Page 56
- Explain
the concepts of consumer surplus and producer surplus. Pages 54-57
- Explain
the concepts of social surplus and deadweight loss. Pages 58-59
- Explain
why economists believe markets are efficient. Page 58
- Explain
the “Paradox of Value” (“The Paradox of Diamonds and Water”)
and how the paradox is resolved (Consumer Surplus). Page 59
- Demonstrate
how both exports and imports increase efficiency while
simultaneously harming specific consumers (in the case of exports)
or producers (in the case of imports). Pages 60-61
- Identify
the inefficiencies associated with price ceilings. Pages 62-63
- Identify
the inefficiencies associated with price floors. Pages 64-65
- Discuss
the economic flaws and the problems they created in California’s
deregulation of electricity. Pages
68-70
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