AS.180.350 Study Guide - Midterm Guide: Price Elasticity Of Demand, Procyclical And Countercyclical, Market Failure
5 Dec 2017
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The midterm will consist of mcq, essay questions covering topics in the list below, plus a small number of t/f questions focusing on required readings (e. g. , news articles) and chapters. Topics for review are provided below: overview of the u. s. labor market. Labor force definitions: e, u, lfpr, e/p, and u: unemployment= # of people unemployed / labor force = u / e + u, employment= # of people employed = e / p, lfpr= lf / p = E + u / p: the fundamentals of labor demand and supply, labor supply theory. Indifference curve analysis, deriving labor supply curve, decomposing substitution and income effects from wage changes, graphical analysis. Determinants of labor force participation (indifference curve corner solutions). Afdc, eitc, prwora: afdc, eitc, labor demand: marginal productivity theory; profit maximization conditions for the firm. Sr and lr: profit maximization in long-run, mrts = ratio of input prices .
