ECON 2001.01 Study Guide - Midterm Guide: Absolute Advantage

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Published on 4 Mar 2016
Department
05
Midterm on Thursday
Unlimited wants exceed limited resources
i.
What is Scarcity?
a.
i.
Identify efficient points on graph a
b.
E
i.
Identify unattainable point on graph a
c.
Increase
i.
As we move from B to C what will happen to costs? (Graph A)
d.
Shift the curve to the right
i.
Productivity/resources
ii.
How would you show economic growth on Graph A?
e.
Lower
i.
Who has the absolute advantage in producing computers? (Graph B)
f.
Lower
i.
Who has the absolute advantage in producing fertilizer? (Graph B)
g.
Lower
i.
Who has the comparative advantage in producing computers? (Graph B)
h.
Shift D to right
i.
How would you show an increase in Demand? (Graph C)
i.
Shortage, Excess Demand, Price goes up with Supply
i.
All else equal, what would happen to E if increase in Demand? (Graph C)
j.
Price of related goods (Increase)
i.
Change in income (Increase)
ii.
Tastes
iii.
Population and Demographics
iv.
Expected Future Prices
v.
Identify 5 factors that would cause increase in Demand
k.
D^: P^ Q^
l.
S^: Pv Q^
P? Q^
Midterm Review
I.
E
A B
C
F
D
Graph A
Graph B
Fertilizer
200
180
Upper Lower
300 800 Computers
Graph C
P S
P1 E
Q1 D Q
Lecture 8 - M 1 Review
Sunday, February 7, 2016
21:16
Unit One Page 1
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Document Summary

As we move from b to c what will happen to costs? (graph a) i. Who has the absolute advantage in producing computers? (graph b) i. Who has the absolute advantage in producing fertilizer? (graph b) i. Who has the comparative advantage in producing computers? (graph b) i. How would you show an increase in demand? (graph c) i. All else equal, what would happen to e if increase in demand? (graph c) i. Shortage, excess demand, price goes up with supply k. Identify 5 factors that would cause increase in demand i. ii. iii. iv. v.

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