1. Microeconomics ECON 2302 Summer 1, 2010
Marilyn Spencer, Ph.D.
Professor of Economics
Final Exam Review
Chapters 1-6 & 10-14

2. 5th Bonus Extra Credit 4 points possible
View the film, “American Gangster,” and write a brief report that explains:
The structure of the market that Frank Lucas goes into (whether perfectly competitive, or ….)
At least 3 major innovations he makes in his firm that allow him to compete so successfully
your report to me before noon, July 2.
4 points possible

3. Final Exam Test format (same as all other exams):
Short Answer + 15 multiple choice questions
Resources sheet to indicate any additional resources used
Questions include definitions, theory & applications. – Expect graphs and numbers.
60-minute time period
Scantron answer sheet provided
50% of exam over Chapters 13 & 14

4. Chapter 1 EXAM QUESTION TOPIC
Scarcity
Chapter 2 EXAM QUESTION TOPICS
Production possibilities frontier
Opportunity cost
Comparative advantage

5. Chapter 3 EXAM QUESTION TOPICS
Variables that affect demand & supply
Change in demand or supply that change the equilibrium
Chapter 4 EXAM QUESTION TOPICS
Consumer & producer surplus

6. Chapter 5 EXAM QUESTION TOPICS
Causes and effects of externalities & market failures
Public goods/free rider problem

7. Chapter 6 EXAM QUESTION TOPICS
Elasticities of demand
Price elasticity of demand
Income elasticity of demand
Cross price elasticity of demand
Determinants of price elasticity of demand
Elasticity of demand and total revenue

8. Chapter 10 EXAM QUESTION TOPICS – only in the context of chapters 11-14
Family of SHORT RUN cost curves: ATC, AFC, AVC, MC
SHORT RUN v. LONG RUN

9. Profit maximization/loss minimization Barriers to entry
Chapters 11, 12 & 14 EXAM QUESTION TOPICS
Perfectly competitive v. monopolistically competitive v. oligopoly v. monopoly market assumptions/conditions/outcomes
Profit maximization/loss minimization
Barriers to entry
Government antitrust

10. Chapter 13 EXAM QUESTION TOPICS
Barriers to entry
Game theory to explain oligopoly behavior
Collusion
Cartel

11. Any questions on these topics? Questions about anything else?