1. Microeconomics ECON 2302 Summer I, 2011 Marilyn Spencer, Ph.D. Professor of Economics Review: Chapters 1-4

2. Exam 1, June 13 4 Chapters 1–4 ÜStudy PPT slides. ÜStudy assigned end-of-chapter questions. ÜStudy with a friend. 4 Test format: ÜShort answer, graphing, working with numbers ÜQuestions include definitions, theory & applications. Ü90 minutes

3. Test Resources Used 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 MAJOR TOPICS  Rational behavior  Responding to incentives  Positive & normative analysis  Scarcity

5. Chapter 2 MAJOR TOPICS  Production possibilities frontier model  Points on curve  Points below curve  Points above curve  Growth  Opportunity cost/marginal opportunity cost  Comparative advantage v. absolute advantage

6. Chapter 3 MAJOR TOPICS  Law of demand/movement along demand curve  Other major variables that affect demand  Law of supply/movement along supply curve  Other major variables that affect supply  Shortage or surplus  Changes in demand & supply that change the equilibrium

7. Chapter 4 MAJOR TOPICS  Economic surplus  Consumer surplus  Producer surplus  Price floors / ceilings  Effects of a tax  Effects of a government subsidy

8. Assignments to be completed before we begin Chapter 5: 4Pre-Read Ch. 5, including: ÜReview Questions: 3 rd ed. p. 160, 1.1-1.5; p. 161, 2.1; p. 164, 4.2, 4.3 (2 nd ed., p. 166, 1.1- 1.5; p. 167, 2.1; p. 170, 4.2 & 4.3;1 st ed.: 1-6, 11 & 12 on p. 159) and ÜProblems and Applications: 3 rd ed. p. 160 1.6; p. 162, 2.5, 3.3; p. 165, 4.5 (2 nd ed., p. 166, 1.6; p. 168, 3.3; p. 167, 2.5; p. 170, 4.5;1 st ed.: 1, 3, 7 & 17 on pp. 159-161).

9. Any questions?