Microeconomics
ECON 2302
May 2011
Marilyn Spencer, Ph.D.
Professor of Economics
Final Exam Review
Chapters 1-6 & 10-14
Final Exam
 Test format (same as all other exams):
Short answer questions
Resources sheet to indicate any additional resources
used – same resource choices as for previous exams
Questions include definitions, theory & applications. –
Expect graphs and numbers.
75-minute time period
 75% of exam focused on Chapters 12-14
Chapter 1 EXAM QUESTION TOPIC
 Scarcity
Chapter 2 EXAM QUESTION TOPICS
 Production possibilities frontier
 Opportunity cost
 Comparative advantage
Chapter 3 EXAM QUESTION TOPICS
 Variables that affect demand & supply
 Change in demand or supply that
change the equilibrium
Chapter 4 EXAM QUESTION TOPICS
 Consumer & producer surplus
 Price floors & ceilings
 Effects of a tax or government subsidy
Chapter 5 EXAM QUESTION TOPICS
 Causes and effects of externalities & market
failures: deadweight loss
 Rival v. non-rival
 Excludable v. non-excludable
Chapter 6 EXAM QUESTION TOPICS
 Price, Income & Cross-price elasticities of
demand
 Determinants of price elasticity of demand
 Elasticity of demand and total revenue
 Elasticity of supply
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 / minimum
efficient scale
Chapters 11, 12 & 14 EXAM QUESTIONS
Perfectly competitive v. monopolistically
competitive v. monopoly markets:
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Assumptions/conditions
Profit maximization/loss minimization
Barriers to entry
Effects of long run entry and exit
Efficiency
Government antitrust
Chapter 13 EXAM QUESTION TOPICS
 Barriers to entry
 Game theory to explain oligopoly behavior
 Non-cooperative games
 Dominant strategy
 Nash equilibrium
 Prisoners’ dilemma
 Cooperative games
 Collusion
 Cartel
 Price leadership
Any questions on
these topics?
Questions about
anything else?