1. Microeconomics ECON 2302 Summer I, 2011
Marilyn Spencer, Ph.D.
Professor of Economics
Final Exam Review
Chapters 1-6 & 10-14

2. Final Exam: Thursday, June 30
Test format (same as Exam 2):
40 regular multiple choice questions
Resources sheet to indicate any additional resources used – same resource choices as for 1st exam
Questions include definitions, theory & applications. – Expect graphs and tables of numbers.
Scantron answer sheet provided
More than 50% of exam focused on Chapters 12-14

3. Chapter 1 EXAM QUESTION TOPIC
Positive v. normative analysis
Chapter 2 EXAM QUESTION TOPICS
Opportunity cost

4. Chapter 3 EXAM QUESTION TOPICS
Variables that affect demand & supply
Change in demand or supply that change the equilibrium
Chapter 4 EXAM QUESTION TOPICS
Effects of price controls
Consumer & producer surplus, by looking at deadweight loss

5. Chapter 5 EXAM QUESTION TOPICS
Externalities & market failures
Public goods
Common resources
Chapter 6 EXAM QUESTION TOPICS
Price, income & cross-price elasticities of demand
Determinants of price elasticity of demand
Demand elasticity & total revenue
Elasticity of supply

6. Chapter 10 EXAM QUESTION TOPICS only in the context of chapters 11-14
Family of SHORT RUN cost curves: ATC, AFC, AVC, MC
LONG RUN: Returns to scale

7. Four assumptions/conditions Profit maximization/loss minimization
Chapters 11, 12 & 14 EXAM QUESTIONS
Perfectly competitive v. monopolistically competitive v. monopoly markets:
Four assumptions/conditions
Profit maximization/loss minimization
Barriers to entry
Effects of long run entry and exit
Efficiency
Government antitrust

8. Chapter 13 EXAM QUESTION TOPICS
Barriers to entry
Game theory to explain oligopoly behavior
Non-cooperative games
Dominant strategy/Nash equilibrium
Nash equilibrium
Prisoners’ dilemma
Cooperative games
Collusion
Cartel

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