Macroeconomics
ECON 2301
Fall 2009
Marilyn Spencer, Ph.D.
Professor of Economics
Exam Topics, Chapters 1-4
Exam 1, September 23
 Chapters 1 – the first ½ of 4
Study PPT slides
Study assigned end-of-chapter questions
Study with a friend
 Test format:
25 multiple choice questions (+ 3 extra credit)
Questions include definitions, theory & applications –
Expect graphs and numbers.
1 hour
Scantron answer sheet provided
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: ___________________________
Chapter 1 Exam Question Topics, Sec. 004
 Economics
 Macroeconomics v. microeconomics
 Incentives
 Rational self-interest
 Positive v. normative statement
 Ceteris paribus assumption
 Resources
Chapter 2 Exam Topics, Sec. 004
 Opportunity cost
 Production possibilities frontier:
 Points on or off PPF
 Bowed shape – what this means for
marginal opportunity cost
 Moving along PPC
 Comparative v. absolute advantage
 Choosing what to produce: capital goods v.
consumption goods
Chapter 3 Exam Topics, Sec. 004
 Law of demand
 Movement along a demand curve
 Other variables that affect Demand, and how they
shift the curve
 Law of supply
 Other variables that affect Supply, and how they shift
the curve
 Equilibrium, and how shifts in the D & S curves
change equilibrium Q & P
 Shortage or surplus
Chapter 3 & 4 Exam Topics (the 1st part of Ch. 4 is
review), Sec. 004

Changing market equilibrium:
 Effect of a change in income shifting demand: normal
goods v. inferior goods
 Effect of a change in the price of a substitute shifting
demand: complements v. substitutes
 Effects of other determinants shifting demand
 Effects of determinants that shift supply
Chapter 1 Exam Question Topics, Sec. 005
 Incentives
 Scarcity
 Rational self-interest
 Ceteris paribus assumption
 Macroeconomics v. microeconomics
 Positive v. normative statement
Chapter 2 Exam Topics, Sec. 005
 Resources
 Opportunity cost
 Production possibilities frontier:
 Points on or off PPF
 Assumptions
 Marginal opportunity cost
 Choosing what to produce: consumption
goods v. capital goods
 Scarcity
Chapter 3 Exam Topics, Sec. 005
 Law of demand
 Movement along a demand curve
 Other variables that affect Demand, and how they
shift the curve
 Law of supply
 Other variables that affect Supply, and how they shift
the curve
 Equilibrium, and how shifts in the D & S curves
change equilibrium Q & P
 Shortage or surplus
Chapter 3 & 4 Exam Topics (the 1st part of Ch. 4 is
review), Sec. 005

Changing market equilibrium:
 Effect of a change in income shifting demand: normal
goods v. inferior goods
 Effect of a change in the price of a substitute shifting
demand: complements v. substitutes
 Effects of other determinants shifting demand
 Effects of determinants that shift supply
 Effects if BOTH demand & supply shift
In class September 28, we’ll finish
Ch. 4.