Macro Learning Objectives for questions over Exam 1 Form A

 

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.

 

  After reading this chapter, you should be able to:

  1. Interpret how demand represents marginal benefit. Page 54
  2. Interpret how supply represents marginal cost. Page 56
  3. Explain the concepts of consumer surplus and producer surplus. Pages 54-57
  4. Explain the concepts of social surplus and deadweight loss. Pages 58-59
  5. Explain why economists believe markets are efficient. Page 58
  6. Explain the “Paradox of Value” (“The Paradox of Diamonds and Water”)  and how the paradox is resolved (Consumer Surplus). Page 59
  7. 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
  8. Identify the inefficiencies associated with price ceilings. Pages 62-63
  9. Identify the inefficiencies associated with price floors. Pages 64-65
  10. Discuss the economic flaws and the problems they created in California’s deregulation of electricity.  Pages 68-70