PBL: MICROECONOMICS. Competency: Capital and Natural Resource Markets

Size: px
Start display at page:

Download "PBL: MICROECONOMICS. Competency: Capital and Natural Resource Markets"

Transcription

1 Competency: Capital and Natural Resource Markets 1. Describe how firms determine the quantity of resources to use and what determines resource supply in competitive markets and imperfectly competitive markets. 2. Define the types of capital. 3. Discuss the limitations of substitutability with respect to natural capital. 4. Describe why social capital is important for economic activities. 5. Discuss how the value of capital stock is determined. 6. Describe the concept of discounting. 7. Explain the difference between the economistic and ecological view of natural capital. 8. Discuss the role of financial capital markets in business decisions. 1. Define the difference between wealth and income. Competency: Distribution of Income and Wealth 2. Define how the distribution of personal income in an economy is measured and discuss issues related to income distribution. 3. Define and explain the functional and personal distribution of income. 4. Explain the determinants of income distributions. 5. Discuss how trade can expand a society s consumption opportunities. 6. Describe the distribution of income and wealth in the United States. 7. Describe how inequality is measured. 8. Present different definitions of equity. 9. Explain how government s redistribution of income through taxation, spending, and assistance/entitlement programs affects the well-being of people and businesses in an economy. 10. Explain how subsidies effect income distribution and economic growth. 1. Describe what is meant by economic uncertainty. Competency: Economic Uncertainties 2. Discuss three standard ways of modeling choices made under conditions of uncertainty. 3. Describe the difference between risk and uncertainty. 4. Explain consumer behavior under uncertainty. 5. Differentiate between intermediate and final goals. 6. Discuss the relationship between economics and well-being. 7. Summarize the differences between the three spheres of economic activity. 8. Understand what is meant by economics in context. Page 1

2 Competency: Elasticity 1. Use concepts of elasticity of demand and supply to evaluate quantitatively economic situations. 2. Describe how elasticity is calculated and its relevance to understanding markets. 3. Identify and interpret the relationship between price elasticity of demand and the effect of a price change on total revenue. 4. Define, calculate, and interpret cross elasticities and income elasticities of demand. 5. List and explain the determinants of elasticity. 6. Define and differentiate between substitutes and complements. 7. Calculate and explain the determinants of price elasticity of supply. 8. Explain long elasticity and tax incidence. 9. Understand the income and substitution effects of a price change. 10. Define and illustrate equilibrium. 11. Discuss the differences between short-run and long-run elasticities. Competency: Labor Markets and Wages 1. Explain how the marginal productivity theory of resource demand applies to wage rate determination. 2. Explain how the wage rate is determined. 3. Calculate and determine wage rates in a competitive labor market and in a monopolistic labor markets. 4. Explain the effects of unions and specific union tactics on wages and employment in both competitive and monopolistic markets. 5. Evaluate the efficiency of specific legislation aimed at increasing wage rates and employment. 6. List and describe the factors that affect worker productivity. 7. Discuss how individuals make decisions about entering the market for paid labor. 8. Describe the interaction of supply and demand in the aggregate labor market. 9. Explain variations in wages among workers, including wage discrimination based on race and gender. 10. Explain how wages are affected by the market value and productivity of the individual working. 11. Discuss wage differences among jobs and professions, using the laws of demand and supply and the concept of productivity. Page 2

3 Competency: Market Failure 1. Discuss how to use the concepts of equity, efficiency, and market failure to analyze and evaluate government policies such as price floors and ceilings, tax policy, and environmental policy. 2. Define and explain the effects of price ceilings and price floors. 3. Identify areas of actual/potential market failure. 4. Discuss causes of market failure and possible means of correction. 5. Describe types of government policy interventions used to overcome or prevent market failure. 6. Explain the effect of market failure on the economy. 7. Define four essential economic activities 8. Describe what is necessary for markets to function effectively. Competency: Monopolies 1. Define monopoly and explain the conditions under which it functions. 2. Analyze the behavior of firms in a monopoly and calculate the resulting changes in producer or consumer surplus. 3. Identify and graphically construct the demand, average revenue, and marginal revenue curves for a pure monopolist. 4. Compare and contrast operations of a monopoly with that of a perfect competitor. 5. Illustrate and explain market inefficiencies related to monopolies. 6. Define and explain different types of pricing in order to regulate monopolies. 7. Define and explain the nature of anti-trust laws. 8. Explain the concept of a bilateral monopoly and its effects on employment and wages. 9. Describe how a monopolist maximizes profits. 10. Discuss the historical development of public purpose organizations regarding the regulation of monopolies and trade practices. 11. Determine the role of government in preventing private monopolies and regulating public monopolies. Competency: Oligopolies and Duopolies 1. Define oligopoly and discuss firm behavior under conditions of oligopoly. 2. List characteristics of an oligopoly firm. 3. List the major barriers that keep companies from joining oligopolies. 4. Discuss the pros and cons of oligopolies. 5. Define duopolies. 6. Discuss the Cournot Duopoly, Bertrand Duopoly, and Stackelberg Duopoly. Page 3

4 Competency: Opportunity Cost 1. Define and compute opportunity cost. 2. Explain the concept of opportunity costs. 3. Differentiate between explicit costs and implicit costs. 4. Relate the marginal theory of value and the theory of time and money in production. 5. Provide an example of the application of opportunity costs. 6. Analyze the concepts of trade-offs and opportunity cost. 7. Ascertain why scarcity faces people at all times and interprets the relationship between trade-offs and opportunity costs. 8. Compare opportunity cost, marginal benefit, and marginal cost. 9. Demonstrate how opportunity costs affect economic decisions. Competency: Perfect Competition 1. Define perfect competition and explain the conditions under which it functions. 2. Learn characteristics of the categories of competition in markets. 3. Identify and determine the short-run supply curve for a perfect competitor. 4. Construct and describe the long-run market supply curve in the case of a perfectly competitive market for a constant cost and an increasing cost market. 5. Compare perfect competition with imperfect competition. 6. List the assumptions behind the traditional model of perfectly competitive markets. 7. Describe how the situation facing the individual firm relates to the overall market situation, in perfect competition. 8. Indicate how firms maximize profits under perfect competition. 9. Explain how, under certain conditions, a perfectly competitive market is economically efficient. Page 4

5 Competency: Production Factors 1. Define factors of production (e.g., labor, capital, entrepreneurship, and natural resources.) 2. Explain and show graphically how production and pricing decisions are made for firms in each of these market structures. 3. Define, explain, and calculate total product, marginal product, average product, total costs, total fixed costs, total variable costs, average costs, average variable costs, and average fixed costs. 4. Define marginal thinking and how and when it can be used to determine the optimal level of production. 5. Explain the importance of financial capital for production decisions. 6. Give examples to explain how businesses and industry depend upon workers with specialized skills to make production more efficient. 7. Define the law of diminishing returns and explain how it is depicted by the total product and marginal product curves. 8. Calculate and graph data concerning the level of production by using profit maximizing rules. 9. Define break-even point and apply break even analysis. 10. Identify resources that are used in the production process. 11. Construct a short-run demand schedule for a resource. 12. Distinguish between internal and external costs. Competency: Production and Trade 1. Evaluate consumer surplus and producer surplus in markets that import or export, and evaluate the deadweight loss from trade restrictions. 2. Describe how to analyze production possibilities of firms and countries, the sources of comparative advantages, and gains from trades. 3. Define how production possibilities schedules and graphs illustrate the concepts of scarcity, choice, and cost. 4. Define and calculate absolute and comparative advantages for production and exchange. 5. Explain how nations benefit from free trade. 6. Define ways in which societies determine allocation, efficiency, and equity. 7. Explain how and why the production possibilities frontier shifts. 8. Identify and explain various illegal trade activities. 9. Explain the impact international trade has in microeconomics. 10. Explain the concept of derived demand. Page 5

6 Competency: Supply and Demand 1. Explain the law of supply, the law of demand, and equilibrium price. 2. Learn the assumptions and determinants of supply and demand in order to use models of markets for description, analysis, and prediction. 3. Explain the basic theories behind consumer behavior (demand) and producer behavior (supply) constrained by the scarcity of valuable resources. 4. Use supply and demand to predict the likely results of changes in economic conditions and policies. 5. Identify and explain the variables which cause a change in demand. 6. Define topics of market analysis including signaling, rationing, scarcity, shortage, and inadequacy. 7. Describe the impacts of price floors and ceilings. 8. Interpret supply and demand curves that show increases and decreases in quantity supplied and quantity demanded. 9. Appraise the effects of technological changes, changes in consumer preferences, price inputs, environment, and legislation on supply and demand and price of goods/services. 10. Describe the concept of elasticity and inelasticity and analyze elasticity as it applies to supply and demand and consumer decisions. 11. Describe how relative prices affect the buying and selling decisions of consumers and producers and illustrate how a change in price affects quantity demanded or quantity supplied. 12. Discuss the effects of shortages in supply and/or demand on the relative scarcity, price, and quantity of particular products. Page 6

7 References: Career Cluster Resources for Marketing, Sales & Service National Association of State Directors of Career Technical Education Consortium. Washington, DC. Career Cluster Resources for Business, Management and Administration National Association of State Directors of Career Technical Education Consortium. Washington, DC. Career Cluster Resources for Finance National Association of State Directors of Career Technical Education Consortium. Washington, DC. Business Education Standards. National Business Education Association. Reston, VA. Microeconomics in Context Student Study Guide Global Development and Environment Institute, Tufts University Medford, MA. Principles of Economics Course Competencies. Georgia Technical College, Atlanta, GA. Principles of Microeconomics Course Syllabus. Tennessee Tech University, Cookeville, TN. Introduction to Microeconomics Course Outline. Lewis and Clark Community College, Godfrey, IL. Microeconomics Course Outline Merced College, Merced, CA. Principles of Microeconomics Course Syllabus. MIT, Cambridge, MA. Principles of Microeconomics Course Syllabus West Virginia University, Morgantown, WV. Principles of Microeconomics Course Outline. Cuyahoga Community College, Cleveland, OH. Economic and Policy Course Syllabus. Georgia Institute of Technology, Georgia Tech University, Atlanta, GA. Page 7

PBL: Economic Analysis & Decision Making. Competency: Comparative Economic Systems. Competency: History of Economic Thought

PBL: Economic Analysis & Decision Making. Competency: Comparative Economic Systems. Competency: History of Economic Thought Competency: Comparative Economic Systems 1. Use basic economic concepts (e.g., supply and demand; production, distribution, and consumption; labor, wages, and capital; inflation and deflation; market economy

More information

FBLA: ECONOMICS. Competency: Basic Economic Concepts and Principles

FBLA: ECONOMICS. Competency: Basic Economic Concepts and Principles Competency: Basic Economic Concepts and Principles 1. Define money (characteristics, role, and forms) and trace how money and resources flow through the American economic system. 2. Utilize decision-making

More information

Demand Equilibrium price Consumer sovereignty Elasticity Shortage Surplus

Demand Equilibrium price Consumer sovereignty Elasticity Shortage Surplus Social Studies AP Economics STANDARD SKILLS and CONCEPTS VOCABULARY Standard 1: Scarcity and Economic Reasoning Students will understand that productive resources are limited; therefore, people, institutions

More information

Microeconomics Required Graphs and Terms

Microeconomics Required Graphs and Terms Microeconomics Required Graphs and Terms Understanding and explaining the economic concepts required by the AP and IB exams rests on a solid knowledge of fundamental economic graphs and terms. In order

More information

Review for the Midterm Exam.

Review for the Midterm Exam. Review for the Midterm Exam. 1. Chapter 1 The principles of decision making are: o People face tradeoffs. o The cost of any action is measured in terms of foregone opportunities. o Rational people make

More information

MICROECONOMICS - EXAM IV

MICROECONOMICS - EXAM IV MICROECONOMICS - EXAM IV Spring 2004 G. Garesché 1. a. On the axes below graph a competitive market. Identify the equilibrium price and quantity, and the consumer and producer surpluses. Supposing this

More information

A. a change in demand. B. a change in quantity demanded. C. a change in quantity supplied. D. unit elasticity. E. a change in average variable cost.

A. a change in demand. B. a change in quantity demanded. C. a change in quantity supplied. D. unit elasticity. E. a change in average variable cost. 1. The supply of gasoline changes, causing the price of gasoline to change. The resulting movement from one point to another along the demand curve for gasoline is called A. a change in demand. B. a change

More information

PBL: Macroeconomics. Competency: Aggregate Demand and Supply. Competency: Consumption and Saving

PBL: Macroeconomics. Competency: Aggregate Demand and Supply. Competency: Consumption and Saving Competency: Aggregate Demand and Supply 1. Define aggregate demand and aggregate supply. 2. Describe the individual components of aggregate demand and aggregate supply. 3. Describe the problem that leakages

More information

Student Name: Date: Teacher Name: Heather Creamer. Score:

Student Name: Date: Teacher Name: Heather Creamer. Score: Economics EOC Quiz Answer Key Microeconomic Concepts - (SSEMI1) Flow Of Goods, (SSEMI2) Law Of Demand, (SSEMI3) Economic Behavior, (SSEMI4) Organization And Role Of Business Student Name: Teacher Name:

More information

ECF1100 Microeconomics

ECF1100 Microeconomics ECF1100 Microeconomics Semester 2, 2015 Notes Textbook: Gans, King, Byford and Mankiw, Principles of Microeconomics 6th Edition, Cengage Learning, Copyright 2015 (ISBN 9780170248525). Contents Week 1 Introduction

More information

AS Economics Unit 1: Markets and Market Failure Syllabus, Key Terms & Charts

AS Economics Unit 1: Markets and Market Failure Syllabus, Key Terms & Charts AS Economics Unit 1: Markets and Market Failure Syllabus, Key Terms & Charts 10.1 The Economic Problem The Nature and Purpose of Economic Activity The central purpose of economic activity is the production

More information

UNIT 6 cont PRICING UNDER DIFFERENT MARKET STRUCTURES. Monopolistic Competition

UNIT 6 cont PRICING UNDER DIFFERENT MARKET STRUCTURES. Monopolistic Competition UNIT 6 cont PRICING UNDER DIFFERENT MARKET STRUCTURES Monopolistic Competition Market Structure Perfect Competition Pure Monopoly Monopolistic Competition Oligopoly Duopoly Monopoly The further right on

More information

AP Microeconomics Review

AP Microeconomics Review AP Microeconomics Review 1. Firm in Perfect Competition (Long-Run Equilibrium) 2. Monopoly Industry with comparison of price & output of a Perfectly Competitive Industry 3. Natural Monopoly with Fair-Return

More information

Exam No. 3 Date: 7 or 9 May Instructor: Brian B. Young

Exam No. 3 Date: 7 or 9 May Instructor: Brian B. Young Economics 212 Microeconomic Principles Exam No. 3 Date: 7 or 9 May 2012 Name The value of this exam is 100 points Instructor: Brian B. Young Please show your work where appropriate! Multiple Choice 2 points

More information

AP Microeconomics Syllabus

AP Microeconomics Syllabus Advanced Placement Microeconomics AP Microeconomics Syllabus AP Microeconomics is a challenging course that is meant to be the equivalent of a freshman college course and can earn students college credit.

More information

Intermediate Microeconomics Video Handbook, IM6 Faculty, 2014

Intermediate Microeconomics Video Handbook, IM6 Faculty, 2014 A. MATH TOPICS 1. Calculus Review Machina 2. Elasticity Machina 3. Level Curves Machina a. Level Curves of a Function Machina b. Slopes of Level Curves Machina 4. Scale Properties of Functions a. Scale

More information

Mr. Todd Reynolds Resources

Mr. Todd Reynolds Resources AP Microeconomics Syllabus Mr. Todd Reynolds Benjamin.reynolds@fayette.kyschools.us AP Econ is a fast paced course that focuses on the decision making of individuals, businesses, and the government. Students

More information

Good Luck writing the Mock Exam!!

Good Luck writing the Mock Exam!! PASS MOCK EXAM FOR PRACTICE ONLY Course: ECON 1000 B Facilitator: Ben Dates and locations of mock exam take up: FRIDAY DECEMBER 11: 10 12 ME 3380 1 3 ME 3380 It is most beneficial to you to write this

More information

Microeconomics: CH 9-10 Take home quiz.

Microeconomics: CH 9-10 Take home quiz. Microeconomics: CH 9-10 Take home quiz. Mark your answers on a Scantron BEFORE class. Bring your Scantron to Class On Monday, November 26. Be sure to be on time, late Scantron forms will be penalized.

More information

AGEC 105 Spring 2016 Homework 7. 1. Consider a monopolist that faces the demand curve given in the following table.

AGEC 105 Spring 2016 Homework 7. 1. Consider a monopolist that faces the demand curve given in the following table. AGEC 105 Spring 2016 Homework 7 1. Consider a monopolist that faces the demand curve given in the following table. a. Fill in the table by calculating total revenue and marginal revenue at each price.

More information

Practice Multiple Choice Questions Answers are bolded. Explanations to come soon!!

Practice Multiple Choice Questions Answers are bolded. Explanations to come soon!! Practice Multiple Choice Questions Answers are bolded. Explanations to come soon!! For more, please visit: http://courses.missouristate.edu/reedolsen/courses/eco165/qeq.htm Market Equilibrium and Applications

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question on the accompanying scantron.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question on the accompanying scantron. Principles of Microeconomics Fall 2007, Quiz #6 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question on the accompanying scantron. 1) A monopoly is

More information

Eco201 Review Outline for Final Exam, Spring 2016, Prof. Bill Even

Eco201 Review Outline for Final Exam, Spring 2016, Prof. Bill Even Note: The outline is intended to provide the student with a list of the major topics that will be on the final exam. The instructor is not limited to questions that fit into one of these precise categories,

More information

Intermediate Microeconomics. Chapter 13 Monopoly

Intermediate Microeconomics. Chapter 13 Monopoly Intermediate Microeconomics Chapter 13 Monopoly Non-competitive market Price maker = economic decision maker that recognizes that its quantity choice has an influence on the price at which it buys or sells

More information

Office: Room 2322, 1620 Edward P. Smith Drive, Aberdeen, WA 98520

Office: Room 2322, 1620 Edward P. Smith Drive, Aberdeen, WA 98520 COURSE: Principles of Microeconomics. ECON& 201-17 INSTRUCTOR: Instructor: Dr. Mark Zerr Phone (360) 538-4137, Office: Room 2322, 1620 Edward P. Smith Drive, Aberdeen, WA 98520 CATALOG INFORMATION ECON&

More information

Government Intervention

Government Intervention Government Intervention Deadweight Loss à the loss in economic surplus due to the market being prevented from reaching the equilibrium price and quantity where marginal benefit (MB) equals marginal cost

More information

BASIC MARKET ELEMENTS. Supply Demand Price Competition

BASIC MARKET ELEMENTS. Supply Demand Price Competition BASIC MARKET ELEMENTS Supply Demand Price Competition Supply Supply is the quantity of goods that firms are willing to produce and sale with respect to the market price when all other conditions (like

More information

ECON 101 MIDTERM 1 REVIEW SESSION (WINTER 2015) BY BENJI HUANG

ECON 101 MIDTERM 1 REVIEW SESSION (WINTER 2015) BY BENJI HUANG ECON 101 MIDTERM 1 REVIEW SESSION (WINTER 2015) BY BENJI HUANG TABLE OF CONTENT I. CHAPTER 1: WHAT IS ECONOMICS II. CHAPTER 2: THE ECONOMIC PROBLEM III. CHAPTER 3: DEMAND AND SUPPLY IV. CHAPTER 4: ELASTICITY

More information

Total Test Questions: 80 Levels: Grades Units of Credit:.50

Total Test Questions: 80 Levels: Grades Units of Credit:.50 DESCRIPTION This course focuses on the study of economic problems and the methods by which societies solve them. Characteristics of the market economy of the United States and its function in the world

More information

4. Which of the following are available in limited quantity and contribute to the problem of scarcity?

4. Which of the following are available in limited quantity and contribute to the problem of scarcity? 1. Given that resources are scarce: A) A "free lunch" is possible but only for a limited number of people B) Poor countries must make choices but rich countries do not have to make choices C) Opportunity

More information

FREEHOLD REGIONAL HIGH SCHOOL DISTRICT OFFICE OF CURRICULUM AND INSTRUCTION SOCIAL STUDIES DEPARTMENT ECONOMICS. Course Philosophy

FREEHOLD REGIONAL HIGH SCHOOL DISTRICT OFFICE OF CURRICULUM AND INSTRUCTION SOCIAL STUDIES DEPARTMENT ECONOMICS. Course Philosophy FREEHOLD REGIONAL HIGH SCHOOL DISTRICT OFFICE OF CURRICULUM AND INSTRUCTION SOCIAL STUDIES DEPARTMENT ECONOMICS Course Philosophy The study of is the cornerstone of adult life, both professionally and

More information

What are the conditions that lead to a perfectly competitive market?

What are the conditions that lead to a perfectly competitive market? Review: Lecture 1. Idea of constrained optimization. Definitions of economics. Role of marginal analysis. Economics as a way to explain. Also used to predict. Chapter 1 and 2. What is a market? What are

More information

COST OF PRODUCTION & THEORY OF THE FIRM

COST OF PRODUCTION & THEORY OF THE FIRM MICROECONOMICS: UNIT III COST OF PRODUCTION & THEORY OF THE FIRM (C) positive and $0 positive. At zero output, variable costs are zero. 2. Based on the information in the table above, the total cost of

More information

Lecture 6 Part I. Markets without market power: Perfect competition

Lecture 6 Part I. Markets without market power: Perfect competition Lecture 6 Part I Markets without market power: Perfect competition Market power Market power: Ability to control, or at least affect, the terms and conditions of the exchanges in which one participates

More information

Chapter 7: Market Structures Section 1

Chapter 7: Market Structures Section 1 Chapter 7: Market Structures Section 1 Key Terms perfect competition: a market structure in which a large number of firms all produce the same product and no single seller controls supply or prices commodity:

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. MBA 640 Survey of Microeconomics Fall 2006, Quiz 6 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A monopoly is best defined as a firm that

More information

SUPPLY AND DEMAND : HOW MARKETS WORK

SUPPLY AND DEMAND : HOW MARKETS WORK SUPPLY AND DEMAND : HOW MARKETS WORK Chapter 4 : The Market Forces of and and demand are the two words that economists use most often. and demand are the forces that make market economies work. Modern

More information

Economics 103h Fall 2012: Part 1 of review questions for final exam

Economics 103h Fall 2012: Part 1 of review questions for final exam Economics 103h Fall 2012: Part 1 of review questions for final exam This is the first set of review questions. The short answer/graphing go through to the end of monopolistic competition. The multiple

More information

CHAPTER 10: PURE MONOPOLY

CHAPTER 10: PURE MONOPOLY CHAPTER 10: PURE MONOPOLY Introduction While the perfectly competitive firm has no power over prices in the marketplace, the monopoly has the power necessary to determine both the price and output of the

More information

b. Cost of Any Action is measure in foregone opportunities c.,marginal costs and benefits in decision making

b. Cost of Any Action is measure in foregone opportunities c.,marginal costs and benefits in decision making 1 Economics 130-Windward Community College Review Sheet for the Final Exam This final exam is comprehensive in nature and in scope. The test will be divided into two parts: a multiple-choice section and

More information

Lecture 7 Markets with market power. (Please note that there is no Part II of Lecture 6)

Lecture 7 Markets with market power. (Please note that there is no Part II of Lecture 6) Lecture 7 Markets with market power (Please note that there is no Part II of Lecture 6) Four idealized types of market structure Perfect competition: many sellers; they are selling an identical product

More information

Economics 100 Quiz 1 Fall The fundamental economic problem faced by all societies is: a. unemployment c. poverty b. inequality d.

Economics 100 Quiz 1 Fall The fundamental economic problem faced by all societies is: a. unemployment c. poverty b. inequality d. Economics 100 Quiz 1 Fall 2000 1. The fundamental economic problem faced by all societies is: a. unemployment c. poverty b. inequality d. scarcity 2. "Capitalism" refers to: a. the use of markets c. private

More information

1 st Exam. 7. Cindy's cross-price elasticity of magazine demand with respect to the price of books is

1 st Exam. 7. Cindy's cross-price elasticity of magazine demand with respect to the price of books is 1 st Exam 1. Marginal utility measures: A) the total utility of all your consumption B) the total utility divided by the price of the good C) the increase in utility from consuming one additional unit

More information

CHAPTER 13 MARKETS FOR LABOR Microeconomics in Context (Goodwin, et al.), 2 nd Edition

CHAPTER 13 MARKETS FOR LABOR Microeconomics in Context (Goodwin, et al.), 2 nd Edition CHAPTER 13 MARKETS FOR LABOR Microeconomics in Context (Goodwin, et al.), 2 nd Edition Chapter Summary This chapter deals with supply and demand for labor. You will learn about why the supply curve for

More information

40 : Product Pricing and A Summing Up

40 : Product Pricing and A Summing Up 40 : Product Pricing and A Summing Up 1 Session Outline Product Pricing A summing up for the course Peak load pricing Kind of price discrimination in which consumers are segregated on the basis of time

More information

Name AP Microeconomics Sample Exam Any School USA Period 7 September 2005

Name AP Microeconomics Sample Exam Any School USA Period 7 September 2005 Name AP Microeconomics Sample Exam Any School USA Period 7 September 2005 1. Economics is most accurately defined as the study of (A) businesses and the production of goods and services (B) efficiency

More information

Microeconomics Instructor Miller Practice Problems Monopolistic Competition

Microeconomics Instructor Miller Practice Problems Monopolistic Competition Microeconomics Instructor Miller Practice Problems Monopolistic Competition 1. A monopolistically competitive market is described as one in which there are A) a few firms producing an identical product.

More information

5. The supply curve of a monopolist is A) upward sloping. B) nonexistent. C) perfectly inelastic. D) horizontal.

5. The supply curve of a monopolist is A) upward sloping. B) nonexistent. C) perfectly inelastic. D) horizontal. Chapter 12 monopoly 1. A monopoly firm is different from a competitive firm in that A) there are many substitutes for a monopolist's product but there are no substitutes for a competitive firm's product.

More information

CHAPTER 11 MARKETS WITHOUT POWER Microeconomics in Context (Goodwin, et al.), 1 st Edition (Study Guide 2008)

CHAPTER 11 MARKETS WITHOUT POWER Microeconomics in Context (Goodwin, et al.), 1 st Edition (Study Guide 2008) CHAPTER 11 MARKETS WITHOUT POWER Microeconomics in Context (Goodwin, et al.), 1 st Edition (Study Guide 2008) Chapter Summary This chapter presents the traditional, idealized model of perfect competition.

More information

Principles I, Economics 2610 Exam #1 Summer, 2006

Principles I, Economics 2610 Exam #1 Summer, 2006 Principles I, Economics 2610 Dr. Porter Exam #1 Summer, 2006 Last Name First Name 1. (4 pts.) Why is there scarcity? 2. (5 pts.) Assume you and a friend are watching a movie together. Would the opportunity

More information

Consumer and Producer Surplus. Consumer and Producer Surplus. Consumer Surplus. Consumer Surplus. Consumer Surplus Individual consumer surplus

Consumer and Producer Surplus. Consumer and Producer Surplus. Consumer Surplus. Consumer Surplus. Consumer Surplus Individual consumer surplus Consumer and Consumer and February 6, 2007 Reading: Chapter 6 Introduction Consumer surplus Producer surplus Efficiency and the gains from trade s 2 Introduction Connections to: Opportunity costs to consumers

More information

AP MICROECONOMICS SYLLABUS

AP MICROECONOMICS SYLLABUS AP MICROECONOMICS SYLLABUS Instructor: Michael Mezzio Office: Room 904 Office Hours: W 8:00am - 8:30am M, T and TH by appointment. Office Phone: 404-847-1980 ext. 256 E-mail: mezzio@fulton.k12.ga.us (This

More information

Paper 1 (SL and HL) markschemes

Paper 1 (SL and HL) markschemes Paper 1 (SL and HL) markschemes Examples of markschemes for Exam practice: paper 1 in the Economics for the IB Diploma CD-ROM are provided below. Paper 1 section A: Microeconomics Chapter 2 Competitive

More information

Economics 202 Study Questions Test #3 Professor Thornton

Economics 202 Study Questions Test #3 Professor Thornton Economics 202 Study Questions Test #3 Professor Thornton 1. Which of the following is a type of market structure? a. Monopoly b. Perfect competition c. Oligopoly 2. According to the structure/conduct/performance

More information

Learning Objectives. Chapter 6. Market Structures. Market Structures (cont.) The Two Extremes: Perfect Competition and Pure Monopoly

Learning Objectives. Chapter 6. Market Structures. Market Structures (cont.) The Two Extremes: Perfect Competition and Pure Monopoly Chapter 6 The Two Extremes: Perfect Competition and Pure Monopoly Learning Objectives List the four characteristics of a perfectly competitive market. Describe how a perfect competitor makes the decision

More information

DRAFT SOCIAL STUDIES Georgia Standards of Excellence (GSE) Economics

DRAFT SOCIAL STUDIES Georgia Standards of Excellence (GSE) Economics DRAFT SOCIAL STUDIES Economics Economics Economics is the study of how individuals, businesses, and governments make decisions about the allocation of scarce resources. The economics course provides students

More information

B.A. PROGRAMME DISCIPLINE COURSE ECONOMICS. COURSE CONTENTS (Effective from the Academic Year 2011-2012 onwards)

B.A. PROGRAMME DISCIPLINE COURSE ECONOMICS. COURSE CONTENTS (Effective from the Academic Year 2011-2012 onwards) B.A. PROGRAMME DISCIPLINE COURSE ECONOMICS COURSE CONTENTS (Effective from the Academic Year 2011-2012 onwards) DEPARTMENT OF ECONOMICS UNIVERSITY OF DELHI DELHI 1 Syllabus for B.A. Programme - Economics

More information

Econ 201 Final Exam. Douglas, Fall 2007 Version A Special Codes 00000. PLEDGE: I have neither given nor received unauthorized help on this exam.

Econ 201 Final Exam. Douglas, Fall 2007 Version A Special Codes 00000. PLEDGE: I have neither given nor received unauthorized help on this exam. , Fall 2007 Version A Special Codes 00000 PLEDGE: I have neither given nor received unauthorized help on this exam. SIGNED: PRINT NAME: Econ 201 Final Exam 1. For a profit-maximizing monopolist, a. MR

More information

Oligopoly. What Is Oligopoly? What is Oligopoly?

Oligopoly. What Is Oligopoly? What is Oligopoly? CHAPTER 13B After studying this chapter you will be able to Oligopoly Define and identify oligopoly Explain two traditional oligopoly models Use game theory to explain how price and output are determined

More information

BUSINESS ECONOMICS CEC & 761

BUSINESS ECONOMICS CEC & 761 BUSINESS ECONOMICS CEC2 532-751 & 761 PRACTICE MICROECONOMICS MULTIPLE CHOICE QUESTIONS Warning: These questions have been posted to give you an opportunity to practice with the multiple choice format

More information

Chapter 14. Oligopoly and Monopolistic Competition. Anyone can win unless there happens to be a second entry. George Ade

Chapter 14. Oligopoly and Monopolistic Competition. Anyone can win unless there happens to be a second entry. George Ade Chapter 14 Oligopoly and Monopolistic Competition Anyone can win unless there happens to be a second entry. George Ade Chapter 14 Outline 14.1 Market Structures 14.2 Cartels 14.3 Noncooperative Oligopoly

More information

ECONOMICS GENERAL OBJECTIVES

ECONOMICS GENERAL OBJECTIVES ECONOMICS GENERAL The aim of the Unified Tertiary Matriculation Examination (UTME) syllabus in Economics is to prepare the candidates for the Board s examination. It is designed to test their achievement

More information

PBL: Financial Concepts. Competency: Financial Instruments and Institutions

PBL: Financial Concepts. Competency: Financial Instruments and Institutions Competency: Financial Instruments and Institutions 1. Describe the standard and unique features of the following securities: bills, notes, bonds, zeros, and muni s. 2. Demonstrate an understanding of negotiable

More information

AP Microeconomics Chapter 12 Outline

AP Microeconomics Chapter 12 Outline I. Learning Objectives In this chapter students will learn: A. The significance of resource pricing. B. How the marginal revenue productivity of a resource relates to a firm s demand for that resource.

More information

ECON 2302- Principles of Microeconomics. Revision Date: 8/15/16

ECON 2302- Principles of Microeconomics. Revision Date: 8/15/16 Course Syllabus ECON 2302- Principles of Microeconomics Revision Date: 8/15/16 Catalog Description: Analysis of the behavior of individual economic agents, including consumer behavior and demand, producer

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Survey of Microeconomics, Quiz #3 Fall 2006 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) In the absence of a rent ceiling, the long run

More information

Find the competitive equilibrium. The competitive equilibrium is where supply equals demand. Since MC=S, where MC = 2Q/3

Find the competitive equilibrium. The competitive equilibrium is where supply equals demand. Since MC=S, where MC = 2Q/3 Problem Set #13-Key Sonoma State University Economics 305-Intermediate Microeconomic Theory Dr. Cuellar (1) Consider the following demand and cost functions for a monopolistic firm. The industry demand

More information

LECTURE #13: MICROECONOMICS CHAPTER 15

LECTURE #13: MICROECONOMICS CHAPTER 15 LECTURE #13: MICROECONOMICS CHAPTER 15 I. WHY MONOPOLIES ARISE A. Competitive firms are price takers; a Monopoly firm is a price maker B. Monopoly: a firm that is the sole seller of a product without close

More information

How Does A Monopolistically Competitive Market Function?

How Does A Monopolistically Competitive Market Function? How Does A Monopolistically Competitive Market Function? Perfect Competition Monopolistic Competition Oligopoly Pure Monopoly I. Characteristics of Monopolistic Competition: Relatively Large Number of

More information

Economics 100 Exam 2

Economics 100 Exam 2 Name: 1. During the long run: Economics 100 Exam 2 A. Output is limited because of the law of diminishing returns B. The scale of operations cannot be changed C. The firm must decide how to use the current

More information

Introduction to microeconomics

Introduction to microeconomics RELEVANT TO ACCA QUALIFICATION PAPER F1 / FOUNDATIONS IN ACCOUNTANCY PAPER FAB Introduction to microeconomics The new Paper F1/FAB, Accountant in Business carried over many subjects from its Paper F1 predecessor,

More information

Economics 203: Intermediate Microeconomics I Lab Exercise #11. Buy Building Lease F1 = 500 F1 = 750 Firm 2 F2 = 500 F2 = 400

Economics 203: Intermediate Microeconomics I Lab Exercise #11. Buy Building Lease F1 = 500 F1 = 750 Firm 2 F2 = 500 F2 = 400 Page 1 March 19, 2012 Section 1: Test Your Understanding Economics 203: Intermediate Microeconomics I Lab Exercise #11 The following payoff matrix represents the long-run payoffs for two duopolists faced

More information

Chapter 6 MULTIPLE-CHOICE QUESTIONS

Chapter 6 MULTIPLE-CHOICE QUESTIONS Chapter 6 MULTIPLE-CHOICE QUETION 1. Which one of the following is generally considered a characteristic of a perfectly competitive labor market? a. A few workers of varying skills and capabilities b.

More information

Demand & Supply. Chapter 7 discusses the laws of supply and demand and the ways in which a voluntary market supports them.

Demand & Supply. Chapter 7 discusses the laws of supply and demand and the ways in which a voluntary market supports them. Demand & Supply Chapter 7 discusses the laws of supply and demand and the ways in which a voluntary market supports them. E.2.1 Define supply and demand and explain the causes of the Law of Supply and

More information

Perfect Competition. Chapter 7 Section Main Menu

Perfect Competition. Chapter 7 Section Main Menu Perfect Competition What conditions must exist for perfect competition? What are barriers to entry and how do they affect the marketplace? What are prices and output like in a perfectly competitive market?

More information

Econ 101 Kong CMP final review session - solution 2014 fall. Benji Huang

Econ 101 Kong CMP final review session - solution 2014 fall. Benji Huang Econ 101 Kong CMP final review session - solution 2014 fall Benji Huang practice monopoly 1 A monopoly make positive economic profit in the long run because. A) can; barriers to entry prevent other firms

More information

Unit 7. Firm behaviour and market structure: monopoly

Unit 7. Firm behaviour and market structure: monopoly Unit 7. Firm behaviour and market structure: monopoly In accordance with the APT programme objectives of the lecture are to help You to: identify and examine the sources of monopoly power; understand the

More information

UNIVERSITY OF LUSAKA SCHOOL OF BUSINESS, ECONOMICS AND MANAGEMENT BF, BBA, BBAED, BAC, BPA, BPIR, BSM, BRE, AFIN, ECF, ECA, BIP,BIT, BITED,

UNIVERSITY OF LUSAKA SCHOOL OF BUSINESS, ECONOMICS AND MANAGEMENT BF, BBA, BBAED, BAC, BPA, BPIR, BSM, BRE, AFIN, ECF, ECA, BIP,BIT, BITED, UNIVERSITY OF LUSAKA SCHOOL OF BUSINESS, ECONOMICS AND MANAGEMENT BF, BBA, BBAED, BAC, BPA, BPIR, BSM, BRE, AFIN, ECF, ECA, BIP,BIT, BITED, ACT,HRM,BPS ECF 100 PRINCIPLES OF ECONOMICS COURSE OUTLINE Course

More information

Perfect Competition and Pure Monopoly

Perfect Competition and Pure Monopoly In the Name of God Sharif University of Technology Graduate School of Management and Economics Microeconomics (for MBA students) 44111 (1393-94 1 st term) - Group 2 Dr. S. Farshad Fatemi Perfect Competition

More information

Market is a network of dealings between buyers and sellers.

Market is a network of dealings between buyers and sellers. Market is a network of dealings between buyers and sellers. Market is the characteristic phenomenon of economic life and the constitution of markets and market prices is the central problem of Economics.

More information

GEORGIA PERFORMANCE STANDARDS Microeconomics

GEORGIA PERFORMANCE STANDARDS Microeconomics GEORGIA PERFORMANCE STANDARDS Microeconomics GEORGIA PERFORMANCE STANDARDS INTERNATIONAL ECONOMICS Microeconomic Concepts SSEMI1 The student will describe how households, businesses, and governments are

More information

Monopolistic Competition

Monopolistic Competition In this chapter, look for the answers to these questions: How is similar to perfect? How is it similar to monopoly? How do ally competitive firms choose price and? Do they earn economic profit? In what

More information

Ec1 ECONOMICS PAPER 1. INSTRUCTIONS TO CANDIDATES: (To be read out by the external invigilator before the start of the examination)

Ec1 ECONOMICS PAPER 1. INSTRUCTIONS TO CANDIDATES: (To be read out by the external invigilator before the start of the examination) INSTRUCTIONS TO CANDIDATES: (To be read out by the external invigilator before the start of the examination) DEPARTMENT OF EDUCATION HIGHER SCHOOL CERTIFICATE EXAMINATIONS ECONOMICS PAPER 1 Monday 23 October

More information

Unit 7. Firm behaviour and market structure: monopoly

Unit 7. Firm behaviour and market structure: monopoly Unit 7. Firm behaviour and market structure: monopoly Learning objectives: to identify and examine the sources of monopoly power; to understand the relationship between a monopolist s demand curve and

More information

Problems: Table 1: Quilt Dress Quilts Dresses Helen 50 10 1.8 9 Carolyn 90 45 1 2

Problems: Table 1: Quilt Dress Quilts Dresses Helen 50 10 1.8 9 Carolyn 90 45 1 2 Problems: Table 1: Labor Hours needed to make one Amount produced in 90 hours: Quilt Dress Quilts Dresses Helen 50 10 1.8 9 Carolyn 90 45 1 2 1. Refer to Table 1. For Carolyn, the opportunity cost of 1

More information

MICROECONOMICS. Section I. Time-70 minutes. 60 Questions

MICROECONOMICS. Section I. Time-70 minutes. 60 Questions MICROECONOMICS Section I Time-70 minutes 60 Questions Directions : Each of the questions or incomplete statements below is followed by five suggested answers or completions. Select the one that is best

More information

1. An economic institution that combines factors of production into outputs for consumers is a(n): A) industry. B) plant. C) firm. D) multinational.

1. An economic institution that combines factors of production into outputs for consumers is a(n): A) industry. B) plant. C) firm. D) multinational. Miami Dade College ECO 2023 Principles of Microeconomics Summer B 2014 Practice Test #3 1. An economic institution that combines factors of production into outputs for consumers is a(n): A) industry. B)

More information

Chapter 16 Monopolistic Competition and Product Differentiation

Chapter 16 Monopolistic Competition and Product Differentiation Goldwasser AP Microeconomics Chapter 16 Monopolistic Competition and Product Differentiation BEFORE YOU READ THE CHAPTER Summary This chapter develops the model of monopolistic competition. It also discusses

More information

Content Descriptions Economics/Business/Free Enterprise

Content Descriptions Economics/Business/Free Enterprise Content Descriptions Economics/Business/Free Enterprise The State Board of Education is required by Georgia law (A+ Educational Reform Act of 2000, O.C.G.A. 20-2-281) to adopt End-of-Course Tests (EOCT)

More information

CHAPTER 5 WELFARE ANALYSIS Microeconomics in Context (Goodwin, et al.), 3 rd Edition

CHAPTER 5 WELFARE ANALYSIS Microeconomics in Context (Goodwin, et al.), 3 rd Edition CHAPTER 5 WELFARE ANALYSIS Microeconomics in Context (Goodwin, et al.), 3 rd Edition Chapter Overview This chapter presents welfare analysis, including the topics of consumer and producer surplus. This

More information

CHAPTER 12 MARKETS WITH MARKET POWER Microeconomics in Context (Goodwin, et al.), 2 nd Edition

CHAPTER 12 MARKETS WITH MARKET POWER Microeconomics in Context (Goodwin, et al.), 2 nd Edition CHAPTER 12 MARKETS WITH MARKET POWER Microeconomics in Context (Goodwin, et al.), 2 nd Edition Chapter Summary Now that you understand the model of a perfectly competitive market, this chapter complicates

More information

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. MBA 640, Survey of Microeconomics Fall 2006, Final Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The "law of demand" states that, other

More information

Managerial Economics & Business Strategy Chapter 9. Basic Oligopoly Models

Managerial Economics & Business Strategy Chapter 9. Basic Oligopoly Models Managerial Economics & Business Strategy Chapter 9 Basic Oligopoly Models Overview I. Conditions for Oligopoly? II. Role of Strategic Interdependence III. Profit Maximization in Four Oligopoly Settings

More information

Monopolistic Competition

Monopolistic Competition C H A P T E R 16 Monopolistic Competition Microeconomics P R I N C I P L E S O F N. Gregory Mankiw Premium PowerPoint Slides by Ron Cronovich 2009 South-Western, a part of Cengage Learning, all rights

More information

Solution to Selected Questions: CHAPTER 12 MONOPOLISTIC COMPETITION AND OLIGOPOLY

Solution to Selected Questions: CHAPTER 12 MONOPOLISTIC COMPETITION AND OLIGOPOLY Chulalongkorn University: BBA International Program, Faculty of Commerce and Accountancy 900 (Section ) Chairat Aemkulwat Economics I: Microeconomics Spring 05 Solution to Selected Questions: CHAPTER MONOPOLISTIC

More information

Business & Social Responsibilities. Ethics In Marketplace

Business & Social Responsibilities. Ethics In Marketplace 132243 Business & Social Responsibilities Ethics In Marketplace 1 Issues Today 3 degrees of competition in a market Perfect competition Pure monopoly Oligopoly Ethics of anticompetitive practices 2 Perfect

More information

1. Supply and demand are the most important concepts in economics.

1. Supply and demand are the most important concepts in economics. Page 1 1. Supply and demand are the most important concepts in economics. 2. Markets and Competition a. Market is a group of buyers and sellers of a particular good or service. P. 66. b. These individuals

More information

Online Review Copy. AP Micro Chapter 8 Test. Multiple Choice Identify the choice that best completes the statement or answers the question.

Online Review Copy. AP Micro Chapter 8 Test. Multiple Choice Identify the choice that best completes the statement or answers the question. AP Micro Chapter 8 Test Multiple Choice Identify the choice that best completes the statement or answers the question. 1. There would be some control over price within rather narrow limits in which market

More information