1. Microeconomics ECON 2302 Spring 2010
Marilyn Spencer, Ph.D.
Professor of Economics
Review: Chapters 1-5

2. Announcement: Bonus Extra Credit 4 points possible
When: Thursday, February 18, 7 p.m.
Where: CI 102 (this room)
Who: Dr. Andy Piker, professor of philosophy, will speak on steps to resolve conflicts.
What:
Sign in when you arrive
a summary (approx. 100 words) of how his main points involve making choices to before class, February 25.

3. Announcement: Bonus Extra Credit 4 points possible
When: Tuesday, February 23, 4-5 p.m.
Where: Oso Room in the UC (Room 221)
Who: Barry C. Lynn, Director of the Markets, Enterprise, and Resiliency Initiative, and a senior fellow at the New America Foundation, will speak on “Cornered: The New Monopoly Capitalism and the Economics of Destruction.”
What: RSVP ahead of time at RSVP form
Sign in when you arrive
a summary of his main points (approx words) to before class, March 2.

4. Exam 1, February 18 Chapters 1–5 Test format: Study PPT slides.
Study assigned end-of-chapter questions.
Study with a friend.
Test format:
Short answer questions, problem solving, graphing & multiple choice
Questions include definitions, theory & applications – Expect graphing and tables of numbers.
75 minutes

5. 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: ___________________________

6. Chapter 1 MAJOR TOPICS Rational behavior Responding to incentives
Positive & normative analysis
Scarcity

7. Chapter 2 MAJOR TOPICS Production possibilities frontier model
Points on curve
Points below curve
Points above curve
Growth
Opportunity cost
Marginal opportunity cost
Trade-offs
Comparative advantage v. absolute advantage
Circular flow of income model

8. Chapter 3 MAJOR TOPICS Law of demand Variables that affect demand
Law of supply
Variables that affect supply
Shortage or surplus
Changes in demand & supply that change the equilibrium

9. Chapter 4 MAJOR TOPICS Consumer surplus Producer surplus Price floors
Price ceilings
Effects of a tax
Effects of a government subsidy

10. Chapter 5 MAJOR TOPICS Positive externalities Negative externalities
Causes of externalities & market failures
Coase Theorem
Common resource problem
Public goods
Free rider problem

11. Before February 23, pre-read Ch. 6, including:
Review Questions: p. 200, ; p. 202, 2.1 & 2.2; p. 204, 4.1 & 4.2; pp , 5.1; p. 206, 6.1; and “If demand for orange juice (OJ) is inelastic, will a rise in the price of OJ increase or decrease the revenue received by orange juice sellers?” (1st edition: 1-10, p. 193); and
Problems and Applications: p. 202, 3.3; p. 206, 5.2; p. 202, 2.4; p. 207, 6.6; and “During 2001 in Afghanistan, the Taliban outlawed growing poppies, from which opium is made. Opium output fell by 95%, and the price of opium rose from 2,000 rupees/kg to 40,000 rupees/kg. What was the price elasticity of demand for opium in Afghanistan?” (1st edition: 2, 3, 5, 6 & 18, pp ).

12. Any questions?