ECON 2100 Economics and Society
Exam 1 Study Guide Outline
(HW 1 – 4)
Chapter 15.8: Present and Future Value
 Future value
o Discreet compounding
 FVt = PV(1+5)t
o Continuous compounding
 FVt = PVert
 Present value
o Compare different dollar amounts in different time periods
𝐹𝑉𝑡
o 𝑃𝑉 = (1+𝑟)
𝑡
Chapter 1: How Economists Think
 Economics
 Scarcity
 Fields of Economics
o Micro vs Macro
 Models and Assumptions
 Opportunity cost
o Explicit and implicit costs
 Factors of Production (Resources)
 Production Possibilities Frontier
o Changes to PPF
o Economic growth
o Opportunity costs of production
 Invisible Hand Theory
 Comparative advantage
o Specialization and Exchange
o Gains from trade
Chapter 2: Supply and Demand
 Supply and Demand Schedules
 Supply and Demand Curves
 QD and QS
 Law of Demand & Law of Supply
 Shift factors
 Equilibrium
o Graphically, algebraically, or using schedules
 Disequilibrium
o Excess supply or Surplus
o Excess demand or Shortage
 What happens when things change?
o One curve shift
o Both curves shift