Econ study guide Essay

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ECON160 Fall 2013: Topical Review for Second Midterm (Ch 5, 6, 7, 13, 14)
The following is a general guide to the material we have covered since the first midterm. It is not necessarily definitive.
1. Elasticity and its Applications. (Chapter 5)

A. Defined the Price elasticity of Demand Derived the calculation for an unbiased estimate of Elasticity.

B Defined degrees of elasticity: elastic, unitary elastic, inelastic Analyzed the effects on total revenue of changes in price for each

C. Derived the determinants of Elasticity of demand.

D. Derived the Second law of demand

E. Defined the elasticity of supply; the cross price elasticity of demand; the income elasticity of demand
2. The Process of Exchange (Chapter 6) A. Derived the Transaction costs of exchange (Classnotes) B. Defined the alternative periods of analysis C. Analyzed Government Policies 1. Defined a price ceiling: Rent Controls a. Analyzed short-run and long-run response to and increase in demand b. Derived the implications of Rent Controls. 2. Defined a price floor: Minimum Wages: Derived implications 3. Analyzed taxes: a. defined tax burden, tax incidence b. Analyzed the effects of sales or excise tax on prices and burden. c. Analyzed how relative demand and supply elasticity effects burden and tax revenue.
3. The Efficiencies of Markets (Chapter 7)
3. The Efficiencies of Markets (Chapter 7) A. Derived the two primary functions of price. (Classnotes) B. Derived and graphed consumer surplus value C. Derived and graphed producer surplus value D. Derived the graphed total gains from trade E. Analyzed the Efficiency of the market outcome. F. Analyzed the dead-weight efficiency loss from Government policies.
4. The Costs of Production (Chapter 13) A.