ECO 202

Principles of Economics II - Microeconomics

Module 5 - Lesson Plan 1

Review for Exam #1

Notes and Calculators:

1.You may create one page of personal handwritten notes prepared by you, (front and backside) to bring along with your calculator to the exam.  Print your name at the top of the paper. 
2. You must turn in the page of notes along with the exam to the exam proctor, and agree that the notes and the completed exam become the property of the instructor.
3. You may not duplicate the notes, nor save them on computer, nor pass them along to another student.  You may not use notes prepared by someone else.

You are going to be evaluated on the mastery of the following learning outcomes:

5.1  Define, explain the factors that influence, and calculate the price elasticity of demand.

5.2  Define, explain the factors that influence, and calculate the price elasticity of supply.

5.3  Define and explain the factors that influence the cross price elasticity of demand and the income elasticity of demand.

6.1  Describe the alternative methods of allocating scarce resources.

6.2  Distinguish between value and price and define consumer surplus.

6.3  Distinguish between cost and price and define producer surplus.

6.4  Evaluate the efficiency of the alternative methods of allocating scarce resources.

6.5.  Explain the main ideas about fairness and evaluate the fairness of competitive markets and other allocation methods.

7.1  Explain how a price ceiling works and show how a rent ceiling creates a housing shortage, inefficiency, and unfairness.

7.2  Explain how a price floor work and show how the minimum wage creates unemployment, inefficiency, and unfairness.

7.3  Explain how a price support in the market for an agricultural product creates a surplus, inefficiency, and unfairness.

9.1  Explain why negative externalities lead to inefficient overproduction and how property rights, pollution charges, and taxes can achieve a more efficient outcome.

9.2  Explain why positive externalities lead to inefficient underproduction and how public provision, subsidies, vouchers, and patents can achieve a more efficient outcome.

1.  Review your text and study guide carefully.
2.  Complete the course critique at the end of the exam.  (Give yourself some good advice, based upon some alternative studying strategies which I will suggest.)
3.  Prepare to tally the number of points you missed on each learning objective if you are attending the following in-class session.

Love for Econ springs eternal !