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This 1 page Class Notes was uploaded by Miss Sigurd Dicki on Wednesday September 23, 2015. The Class Notes belongs to ECON201 at Drexel University taught by PatriciaAwerbuch in Fall. Since its upload, it has received 52 views. For similar materials see /class/212535/econ201-drexel-university in Economcs at Drexel University.
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Date Created: 09/23/15
Econ 201 Review for First Midterm The test will be multiple choice with 1520 questions You will have 50 minutes to complete it For the questions that require a calculation you will be given multiple choice answers from which to choose after doing your calculation Please bring a 2 pencil eraser and calculator Recognize the de nition of A product market A market A factor market An equilibrium point Capital versus Land as resources used in Substitute Goods production Complementary Goods Entrepreneurship versus Labor as resources Law of Demand used in production Law of Supply Consumer goods versus capital goods Law of Substitutes Comparative Advantage in trade Law of Complements A production function Shortage A production frontier Surplus Law of Increasing Cost Price Floor Full production in the context of production Price Ceiling frontiers Consumer surplus Full employment in the context of production Reservation prices frontiers Marginal Utility Marginal Product Law of Diminishing Marginal Utility Be Able to Calculate You will be asked to nd an opportunity cost given the necessary information about the market value lost and gained when a resource is allocated two different ways In Comparative Advantage you will be asked to calculate the domestic opportunity cost of two products for two different countries in order to determine which product each country should export and import calculate the gains from trade as the difference between the two domestic opportunity costs be able to identify terms of trade these countries could possibly agree upon given that terms of trade must fall in between the two domestic opportunity costs Regarding changes in the market equilibrium price and quantity in response to changes in the nonprice determinants of demand and supply you will be asked to decide whether equilibrium prices and quantities are going up or down when the income of the consumer is increased or decreased the price of a substitute good is increased or decreased the price of a complementary good is increased of decreased the price of a factor of production resource used in production is increased or decreased
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