Economics Mid Term Study Guide

  1. Basic Economic Concepts
  2. Scarcity, choice, Per Unit Opportunity Cost and opportunity cost (Chapter 1) Time 2 Days
  3. Land
  4. Labor
  5. Capital
  6. Entrepreneurship
  7. Production possibilities curve(Chapter 2)
    Time>7 Days
  8. Efficient
  9. Inefficient
  10. Unattainable

PRACTICE PROBLEMMAC AP FREE RESPONSE 1999 Form A Q-3

  1. Comparative advantage, absolute advantage, specialization, terms of trade, benefits of trade, mutually beneficial(Chapter 28)

Time> 5 Days

PRACTICE PROBLEMMAC AP FREE RESPONSE 2003 FORM B Q-2

PRACTICE PROBLEM>MIC AP FREE RESPONSE 1999 FORM A Q-2

  1. The Nature and Functions of Product Markets
  2. Supply and demand (Chapter 3)

Time>7 Days

  1. Market equilibrium
  2. Determinants of supply
  3. R.O.T.T.E.N.
  4. Determinants of demand
  5. T.R.I.B.E.
  6. Price and quantity controls
  1. Elasticity(Chapter 5)

Time>7 Days

  1. Price, income, and cross-price elasticity’s of demand (Midpoints Formula and Total Revenue Rule)
  2. Identifying elasticity segments of a demand curve
  3. Normal Good
  4. Inferior Good
  5. Complement
  6. Substitute
  7. Types of elasticity
  8. Elastic
  9. Inelastic
  10. Unitary
  11. Perfectly Elasticity
  12. Perfectly Inelastic
  13. Determinates of Elasticity
  14. P.A.I.D.
  15. Price elasticity of supply
  1. Tax incidence and deadweight loss

PRACTICE PROBLEM>MIC AP FREE RESPONSE 2005 Form A Q-2

  1. Theory of consumer choice (Chapter 6)

Time>7 Days

  1. Total utility and marginal utility
  2. Law Of Diminishing Marginal Utility
  3. Utility maximization: equalizing marginal utility per dollar
  4. Individual and market demand curves
  5. Income and substitution effects
  6. Consumer and Producer Surplus

PRACTICE PROBLEM MIC AP FREE RESPONSE 2002 FORM A Q-3

  1. Production costs and revenues(Chapter 7)

TIME>10 DAYS

  1. Production functions: short and long run
  2. Marginal product and diminishing returns
  3. Short-run costs
  4. Long-run costs and economies of scale
  5. Economies of scale
  6. Diseconomies of scale
  7. Constant returns to scale
  8. Decreasing returns to scale
  9. Constant Cost Industry
  10. Decreasing Cost Industry
  11. Increasing Cost Industry
  12. Implicit and Explicit Costs
  13. Marginal and average costs
  14. Marginal Average Rule
  15. Cost minimizing input combination
  16. Total and Marginal Revenue

PRACTICE PROBLEM MIC AP FREE RESPONSE 2005 FORM B Q-2

  1. Firm behavior and market structure

TIME>2 DAYS

  1. Profit:
  2. Accounting versus economic profits and normal profit
  3. Normal profit
  4. Profit maximization: MR=MC rule
  1. Perfect competition(Chapter 8)

TIME>7 DAYS

  1. Industry vs. Firm
  2. Profit maximization
  3. Key Characteristics
  4. # of Sellers
  5. Type of Product
  6. Control over price
  7. Ease of entry and exit
  8. Short-run supply and shutdown decision
  9. Behavior of firms and markets in the short run and in the long run
  10. Efficiency and perfect competition

PRACTICE PROBLEM MIC AP FREE RESPONSE 2001 FORM A Q-1

PRACTICE PROBLEM MIC AP FREE RESPONSE 2005 Form A Q-1

  1. Monopoly (Chapter 9)
    TIME>6 DAYS
  2. Sources of market power
  3. Profit maximization
  4. Key Characteristics
  5. # of Sellers
  6. Type of Product
  7. Control over price
  8. Ease of entry and exit
  9. Inefficiency of monopoly
  10. Price discrimination
  11. Natural monopoly

PRACTICE PROBLEM MIC AP FREE RESPONSE 2000 FORM A Q-1

PRACTICE PROBLEM MIC AP FREE RESPONSE 2003 Form A Q-2

PRACTICE PROBLEM MIC AP FREE RESPONSE 2004 Form B Q-1

PRACTICE PROBLEM MIC AP FREE RESPONSE 2005 Form B Q-1

PRACTICE PROBLEM MIC AP FREE RESPONSE 2006 Form A Q-1

  1. Oligopoly (Chapter 10)

TIME>4 DAYS

  1. Interdependence, collusion, and cartels
  2. Key Characteristics
  3. # of Sellers
  4. Type of Product
  5. Control over price
  6. Ease of entry and exit
  7. Kinked Demand Curve
  8. Game theory and strategic behavior
  9. Determining a dominant price strategy
  10. Nash Equilibrium

PRACTICE PROBLEM MIC AP FREE RESPONSE 2007 FORM A Q-3

PRACTICE PROBLEM MIC AP FREE RESPONSE 2007 Form B Q-2

  1. Monopolistic competition (Chapter 10)

TIME>5 DAYS

  1. Product differentiation and role of advertising
  2. Profit maximization
  3. Key Characteristics
  4. # of Sellers
  5. Type of Product
  6. Control over price
  7. Ease of entry and exit
  8. Short-run and long-run equilibrium
  9. Long run tangency of ATC on the demand curve
  10. Excess capacity and inefficiency

PRACTICE PROBLEM MIC AP FREE RESPONSE 2002 FORM B Q-1

PRACTICE PROBLEM MIC AP FREE RESPONSE 2007 Form B Q-1

  1. Factor Markets (Chapter 11)

Time>10 Days

  1. Derived factor demand
  2. Marginal revenue product
  3. Supply of Labor
  4. Labor market and firms’ hiring of labor
  5. Perfectly competitive factor Market
  6. Monopsony
  7. Bilateral Monopoly
  8. Market distribution of income

PRACTICE PROBLEM MIC AP FREE RESPONSE 2000 Form A Q-2

PRACTICE PROBLEM MIC AP FREE RESPONSE 2001 Form A Q-3

PRACTICE PROBLEM MIC AP FREE RESPONSE 2003 Form B Q-3

PRACTICE PROBLEM MIC AP FREE RESPONSE 2003 Form A Q-3

PRACTICE PROBLEM MIC AP FREE RESPONSE 2005 Form A Q-3

PRACTICE PROBLEM MIC AP FREE RESPONSE 2007 Form A Q-2

  1. Market Failure and the Role of Government(Chapter 4& 14)

Time>7 Days

  1. Externalities
  2. Marginal social cost
  3. Private Cost vs. external Cost
  4. Private marginal benefit vs. External Benefit
  5. Remedies( Tax or Subsidize)
  6. Public goods
  7. Public versus private goods
  8. Provision of public goods
  9. Non-Excludable
  10. Free rider
  11. Public policy to promote competition(Chapter 13)
  12. Antitrust policy
  13. Regulation

PRACTICE PROBLEM MIC AP FREE RESPONSE 2001 Form A Q-2

PRACTICE PROBLEM MIC AP FREE RESPONSE 2002 FORM B Q-2

PRACTICE PROBLEM MIC AP FREE RESPONSE 2002 FORM A Q-2

PRACTICE PROBLEM MIC AP FREE RESPONSE 2004 Form A Q-1

  1. Income distribution (Chapter 12)

Time> 5 Days

  1. Poverty Line
  2. Equity
  3. Lorenz Curve
  4. Gini Coefficient
  5. Sources of income inequality
  6. Transfer Payments
  7. Welfare
  8. Social Security