Here’s what I am thinking about for the exam on February 3 at our regular class time. I may update this page over the weekend to refine the content of the exam but the outlines and important things are here, so I am publishing it.
You should be working the homework exercises. The answers are also posted, but you need to write the answers in your own words and use the answers to check your understanding. You will have to write the answers on the exam without the crutch of the answer book. Hope this helps. Bring questions Monday!!
Chapters 1, 2, 3, 4. Emphasis in chapter 3 on simple supply and demand curves and movement of them in response to economic factors. There will be some multiple choice and some short answer questions.
Chapter 1: What does economics study? What is a rational economic person? What are the four pitfalls and how do they apply to simple decision situations one might face? What is marginal cost and marginal benefit? Use it in a situation or problem. What is the difference between normative and positive economic statements?
Chapter 2: What is absolute advantage, how do we calculate it? What is comparative advantage, how do we calculate it? Why should we do the things where we have comparative advantage? What is the production possibilities curve, how do we draw it from certain data, and interpreting efficient points and so on. What is the slope of the production possibilities curve– interpret it! What happens if technology allows an increase of productivity? What factors can move the production possibilities curve? Working problems!
Chapter 3: How to plot a demand curve from data. How to plot a supply curve. How to find equilibrium price and quantity using a graph or using algebra if you have equations. Demonstrate excess supply or excess demand on a graph. What might cause it (examples, such as a price control or a price support)? What does it mean when the graph of supply or demand moves to the left or right? What factors might cause such a move? What is the economic surplus, consumer and producer, and how do we find it on a graph? Why do we say that the equilibrium is economically efficient? What is left out of the picture when we have economic efficiency? Is equilibrium better for society? Under what conditions? Work plenty of problems for this chapter.
Chapter 4: What is productivity? What are the broad issues macroeconomists study? What do we mean by the standard of living? How do we measure economic growth, and why is it important? What does aggregation mean, and why is it important in macroeconomics? Why is it valuable to aggregate? What is the shortcoming of aggregation? What types of macroeconomic policies can there be? What is the difference between monetary, fiscal, and structural policies?
Supply Chain and Logistics 