Macroeconomics ECON 2301 Spring 2009 Marilyn Spencer, Ph.D. Professor of Economics Exam Topics, Chapters 1-4 Exam 1, February 12 Chapters 1 – 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 Economics Microeconomics v. Macroeconomics Rational self-interest Ceteris Paribus assumption Positive v. normative statements Chapter 2 EXAM TOPICS Scarcity Resources Opportunity cost Production possibilities frontier: Points on or off PPF Increase or decrease of PPF Increasing marginal opportunity cost Absolute advantage v. comparative advantage Specialization & gains from trade Chapter 3 EXAM TOPICS Law of demand Movement along a demand curve Other variables that affect Demand Law of supply Other variables that affect Supply Equilibrium Shortage or surplus Chapter 3 & 4 EXAM TOPICS (Ch. 4 is Review) 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 3 & 4 EXAM TOPICS, cont. Demand increases P increases & Q increases Demand decreases P decreases & Q decreases Supply increases P decreases & Q increases Supply decreases P increases & Q decreases Extra Credit Opportunity #4 Watch a recording, read a transcript, or read a news story, of Treasury Secretary Geithner’s new bank bailout plan. Summarize the most important parts, in 50100 words (needn’t be in complete sentences). Email this summary to me by Thurs., Feb. 26 at [email protected], for up to 4 points of extra credit. Assignment to be completed before class February 17: Read Chapter 6 & also read end-ofchapter Problems 6-2, 6-4, 6-6, 6-10 & 6-12 on pp. 156-158.