ECON 1115 Lecture Notes - Lecture 4: Equation, Economic Equilibrium, Exogeny
3 Apr 2016
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Macroeconomics (examines economic phenomenal) vs microeconomics (concerned with individuals) Circular flow diagram + participants in the market. Sample question what factors flow from firms to households for the market for goods and services. Ppf curve: no specialization (linear) vs specialization (bowed-outward) Must be able to answer the three questions on the front page of the power point. Law of demand price and quantity demanded are inverse, downward curve. Law of supply price and quantity supplied , upward curve. Movement along the curve vs curve shift. Endogenous variable (what is shown on the graph) vs exogenous variable. Just need to recognize them and their effect on the curve. 10 multiple choice questions and 1 short answer. Definition of elasticity, price elasticity of demand/supply and income elasticity of demand. Different curves (perfectly elastic, elastic, unit elastic, inelastic and perfectly inelastic) 5 multiple choice questions and 1 short answer. Questions will be similar to those in the practice sheet.
