PCM

 ECON 2302 MICROECONOMICS   

Below you will find the learning objective, concept, idea, term, or theory that each question on the exam will cover. Each number in the following list refers to the question number on Exam 1 that will test your knowledge of that specific learning objective. Each of these topics/learning objectives is discussed in the textbook in the order that they are listed below.  A much better understanding can often be attained by working through MyEconLab assignments connected to any of these objectives.

Chapter 1

 

After reading this chapter, you should be able to:

  1. Define economics and understand the concept of scarcity and limited resources.
  2. Distinguish the difference between microeconomics and macroeconomics.
  3. Understand the importance of rationality in economic analysis.
  4. Explain the importance of models.
  5. Understand the role of assumptions in economic models.
  6. Understand the concept of behavioral economics and bounded rationality.
  7. Distinguish the difference between positive and normative economics.
  8. Know how to construct a graph.
  9. Distinguish the difference between direct and inverse relationships.
  10. Derive the slopes of linear and non-linear lines.

Chapter 2

  After reading this chapter, you should be able to:
  1. Define and understand of the concept of scarcity.
  2. Explain and distinguish between the factors of production.
  3. Understand the difference between wants and needs and the concept of economic goods.
  4. Explain the idea of opportunity cost.
  5. Graph the production possibilities curves.
  6. Discuss the idea of efficiency and inefficiency
  7. Understand the idea of increasing additional cost.
  8. Discuss economic growth and the trade-off between consumption and capital goods.
  9. Explain absolute and comparative advantage.
  10. Discuss specialization, division of labor and trade between nations.

Chapter 3

  After reading this chapter, you should be able to:
  1. Explain the law of demand.
  2. Discuss the difference between money prices and relative prices.
  3. List and explain the other determinants of demand besides the price of the good or service.
    (This learning objective is listed twice to indicate that there will be two questions on the exam covering this topic.)
  4. List and explain the other determinants of demand besides the price of the good or service.
  5. Understand the difference between changes in the quantity demanded and changes in demand.
  6. Explain the law of supply.
  7. Understand the determinants of supply.
  8. Distinguish between changes in the quantity supplied and changes in supply.
  9. Understand the process of determining market equilibrium quantity and equilibrium price.
  10. Understand the process of determining market equilibrium quantity and equilibrium price.

Chapter 4

 

  After reading this chapter, you should be able to:

  1. Discuss the essential features of the price system.
  2. Evaluate the effects of changes in demand and supply on the market equilibrium price and quantity.
  3. Evaluate the effects of changes in demand and supply on the market equilibrium price and quantity.
  4. Understand the various methods of rationing.
  5. Explain the effects of price ceilings.
  6. Discuss the economics of rent control.
  7. Explain the effects of price floors.
  8. Understand agricultural price supports.
  9. Understand the economics of minimum wage.
  10. Discuss the various types of government-imposed quantity restrictions on markets.