EWU – ECON 200 – Principles of Microeconomics – Briand


REVIEW SHEET for TEST 2

Week 4 / Ch5
Handouts: Min Wage, Water Bottles vs Doctor Visits, Canadian e.g.
Day 16 / Going over TEST 1
Min wage worksheet / Monday / 01/25
Day 17 / Min wage worksheet (continued)
Price floor (min wage) versus price ceiling (rent control)
Agricultural subsidies (e.g. of price floor) / Tuesday / 01/26
Day 18 / Health care (price set at zero via government program, or very low via insurance, net income with/without insurance over 10 years e.g., water bottles versus doctor visits e.g.: e.g. of price ceiling) / Wednesday / 01/27
Day 19 / Health care (continued, fair/unfair, Canadian health care market e.g.)
The market for human organs (price set at zero when it’s illegal: e.g. of price ceiling) and Parking meter (price set constant by government: e.g. price floor or price ceiling depending on day/time): reading in Ch. 5.
Consumer/producer surplus general definitions. Consumer surplus in details. Increase/decrease in P* and change in consumer surplus. / Thursday / 01/28
Day 20 / Work on HMK3. / Friday / 01/29
Week 5 / Ch6
Handouts: Subsidies and Incidence
Day 21 / Producer Surplus in details. Increase/decrease in P* and change in producer surplus. Q too high or too low compared to free market Q*: deadweight loss created/meaning. Price ceiling and change in consumer/producer surplus. / Monday / 02/01
Day 22 / Price floor and change in consumer/producer surplus. Taxes (levied on producers or consumers) and change in consumer/producer surplus. / Tuesday / 02/02
Day 23 / Subsidies (given to producers or consumers) and change in consumer/producer surplus: via work on subsidies and incidence handout. / Wednesday / 02/03
Day 24 / Work on subsidies and incidence handout (continued). / Thursday / 02/04
Day 25 / Work on HMK4. / Friday / 02/05
Week 6 / Ch7
Handouts: PPC & Trade, Practice Questions from Ch. 7
Day 26 / Trade, comparative versus absolute advantage, gains from trade.
Worksheet on PPC & trade / Monday / 02/08
Day 27 / S/D analysis of trade: price adjustment to world price, exports/imports, change in consumers, producers and total surplus / Tuesday / 02/09
Day 28 / Tariffs/Quotas. Practice Questions from Chapter 7. / Wednesday / 02/10
Day 29 / Videos on international trade. / Thursday / 02/11
Day 30 / TEST 2 / Friday / 02/12