The Final Examination has 40 multiple-choice questions. The questions on the
final are taken from the Margin Notes and presentations.
The following review is comprehensive. That means that if you see it here,
you'll see it on the test. If you don't see it here, you're not responsible for
it. Good luck on the final. Let me know if you have questions.
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Define economics.
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factors of production
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comparative advantage
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What are the three fundamental economic questions?
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law of demand
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law of supply
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business cycle
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What does movement along a demand curve indicate?
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Of what are prices indicators?
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equilibrium
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What does an outward shift of the production possibilities frontier
illustrate?
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circular flow model
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determinants of demand
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determinants of supply
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firm
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economic models or theories
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marginal analysis
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When is an economy efficient?
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What are externalities?
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Equilibrium price and quantity are determined by the intersection of what?
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What is the most valuable resource sold by most households?
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price elasticity of demand
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elasticity
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How stable are tastes according to economists?
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What is the economic concept of utility?
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What kind of costs represent a firm’s opportunity cost of using its own
resources or those provided by its owners without a corresponding cash
payment?
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What is the objective of a firm?
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What is the law of diminishing marginal returns?
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Market structure includes what market features?
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price taker
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economies of scale
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What are the features of the monopolistic competition market structure?
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fixed cost
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interest rate
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production function
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market power
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With public goods, how does one person’s consumption affect the amount
available to others? Can those who supply the public good exclude those who
do not pay?
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What is the US concept of poverty?
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How does the US federal government determine the level of income that
constitutes the poverty line for a family of a particular size?
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reserve transaction account
