1. Macroeconomics ECON 2301 Spring 2009
Marilyn Spencer, Ph.D.
Professor of Economics
Exam Topics, Chapters 1-4

2. Exam 1, February 12 Chapters 1 – 4 Test format: Study PPT slides
Study assigned end-of-chapter questions
Study with a friend
Test format:
25 multiple choice questions (+ 3 extra credit)
Questions include definitions, theory & applications – Expect graphs and numbers.
1 hour
Scantron answer sheet provided

3. Test Resources Used 3x5 card with notes, 5 test points
Please check any applicable box concerning "fees" for test resources you plan to use DURING the exam:
3x5 card with notes, 5 test points  
textbook and notebook, 15 test points
information from others, 100 test points
  Will NOT use additional resources*
 * Two (2) points will be added to your score if you choose to NOT use any of these test resources.
 Name (please print):____________________
 ID #: ______________________ (some portion of ID#)
 Signature: ___________________________

4. Chapter 1 EXAM QUESTION TOPICS
Economics
Microeconomics v. Macroeconomics
Rational self-interest
Ceteris Paribus assumption
Positive v. normative statements

5. Chapter 2 EXAM TOPICS Scarcity Resources Opportunity cost
Production possibilities frontier:
Points on or off PPF
Increase or decrease of PPF
Increasing marginal opportunity cost
Absolute advantage v. comparative advantage
Specialization & gains from trade

6. Chapter 3 EXAM TOPICS Law of demand Movement along a demand curve
Other variables that affect Demand
Law of supply
Other variables that affect Supply
Equilibrium
Shortage or surplus

7. Chapter 3 & 4 EXAM TOPICS (Ch. 4 is Review)
Changing market equilibrium:
Effect of a change in income shifting demand: normal goods v. inferior goods
Effect of a change in the price of a substitute shifting demand: complements v. substitutes
Effects of other determinants shifting demand
Effects of determinants that shift supply

8. Chapter 3 & 4 EXAM TOPICS, cont.
Demand increases
P increases & Q increases
Demand decreases
P decreases & Q decreases
Supply increases
P decreases & Q increases
Supply decreases
P increases & Q decreases

9. Extra Credit Opportunity #4
Watch a recording, read a transcript, or read a news story, of Treasury Secretary Geithner’s new bank bailout plan.
Summarize the most important parts, in words (needn’t be in complete sentences).
this summary to me by Thurs., Feb. 26 at for up to 4 points of extra credit.

10. Assignment to be completed before class February 17:
Read Chapter 6 & also read end-of-chapter Problems 6-2, 6-4, 6-6, 6-10 & 6-12 on pp