Eco 251 Topics to study for Post-Test
(1) Economic models
(2) Circular Flow Model
(3) What is microeconomics
(4) marginal utility
(5) What does marginal mean?
(6) Read and understand the production possibilities curve.
(7) Find the opportunity cost.
(8) Define scarcity
(9) What are the components of the supply curve
(10) Know what ceteris paribus means
(11) Know what complement goods are and what substitute goods are
(12) Know the affect on supply and demand when the price is below the equilibrium price
(13) Know the difference between an increase in quantity demanded and an increase in demand.
(14) Know what the downward slope of the demand curve illustrates.
(15) Know what the equilibrium price is.
(16) Know what the elasticity of demand is.
(17) Know what the price elasticity of demand measures.
(18) Know what it means if demand is inelastic.
(19) Know what an inferior good is.
(20) Know what utility means
(21) Know what marginal utility means
(22) Know that a perfectly competitive industry is a hypothetical extreme as far as models
(23) Know what the definition of economic profit is.
(24) Know what the marginal cost curve is for a perfectly competitive firm.
(25) Be able to calculate total revenue when given quantity and price.
(26) Know what the shutdown point is for a firm.
(27) Know what the additional revenue gained from selling one more unit is.
(28) Know how to calculate a monopolists greatest net profit.
(29) Know the characteristics of a monopoly
(30) Know that the monopolist maximizes profit where MR = MC and setting price along the demand
curve
(31) Know that monopolists can produce fewer goods and sell them at a higher price to get irregularly
high sustained profits
(32) Know where the monopolists marginal revenue line is in comparison to its demand line.
(33) Be able to determine an example of a monopoly
(34) Know what the term nationalization means
(35) Know what a price cap regulation is
(36) Be able to determine a criticism of reduction of competition that results from corporate mergers.
(37) Know what mergers and acquisitions are.
(38) Know when a pollution charge given to an industry is effective.
(39) Know that a pollution charge is a form of tax imposed on the quantity of pollution that a firm emits.
(40) Know what happens when there is a positive externality.
(41) Know that when a government uses a system of marketable permits as its environmental managing
tool, the reduction in pollution will take place in the firms where it is least expensive to do so.
(42) Know what market failure is.
(43) When one group receives a higher share of total income or wealth than others, it is considered to
be what?
(44) Antipoverty programs that are set up so that the amount of government benefits will decline
substantially as poor people earn more income typically create what?
(45) Know what the Lorenz curve is and what it measures.
(46) Know what Medicaid is.
(47) If the government implements a new policy that provides free skills training to all low-skilled
workers, which makes them more productive and turns them into high-skilled workers, know what
happens to the supply of low-skilled workers and the supply of high-skilled workers.
(48) Know what the poverty line is.
(49) Know what the median income level is.
(50) Know that monopolistic competition means a firm’s decisions resembles monopolies in a way and
perfect competition in another way.
(51) Know what the demand curve looks like for a monopolistic competitor.
(52) Know what it means when an oligopolist demand curve seems kinked.
(53) Know what a differentiated product is.
(54) Know that raising the price for a product produced by a monopolistic competitor would have a
larger decline in quantity demanded than a monopolist because of the increase number of competitors.
