ECON 101 - Study Guide 3

Economics 101

PRINCIPLES OF MICROECONOMICS

Fall 2020

Study Guide for Test #3

1. Comparative advantage - know how to determine

2. Terms of trade - know how to determine

3. Gains from trade - know how to determine

4. Reasons against complete specialization - know what they are

5. Causes of comparative advantage - know what they are

6. Tariffs and their impact - graph

7. Quotas and voluntary export restraints and their impact - graph

8. Loss of surplus due to trade restraints - graph and how to calculate

9. Arguments against globalization - know what they are and rebuttal

10. Arguments for protectionism - know what they are and rebuttal

11. Law of diminishing marginal utility - definition

12. Utility maximization - calculation

13. Income and substitution effects - know what they are

14. Individual demand curve - know how to determine

15. Market demand curve - graph

16. Social influences on decision making - know what they are

17. Common mistakes when making decisions - know what they are

18. Short-run vs. long-run - know the difference

19. Marginal product of labor - graph and how to calculate

20. Law of diminishing returns - definition and reasons for

21. Average product of labor - graph and how to calculate

22. Fixed vs. variable costs - know the difference

23. Implicit vs. explicit costs - know the difference and how to calculate

24. Fixed cost, variable cost, and total cost - graph

25. Marginal cost, average fixed cost, average variable cost, and average total cost - graph and how to calculate

26. Relationship between marginal and average values - graph and relationship

27. Short-run average cost vs. long-run average cost - graph

28. Economies and diseconomies of scale - graph and reasons for

29. Constant returns to scale - graph and reasons for

30. Minimum efficient scale - graph