ECON 222 Study Guide - Midterm Guide: Flow Diagram, Progressive Tax, Marginal Utility
Document Summary
Econ 222 study guide for exam # 1. What do people gain from trade? (xx) tradeoffs (xxi) unemployment benefits/insurance (xxii) progressive tax system (xxiii) economically self-sufficient vs. economically interdependent (xxiv) calculating slope, calculating percentage changes. Chapter 2 (i) positive/normative statements (ii) natural resources/land, human capital, physical capital, labor, entrepreneurs - who gets paid what? (iii) economic models (iv) economic way of thinking (v) circular flow diagram. Know the four arrows/flows: flow of dollars, factors of production, goods& services=output, sales revenue (vi) production possibility frontier (definition) When we are producing efficiently, we face a tradeoff (what does this mean?) This happens when we are inefficient (not making full use of our resources). Opportunity costs of moving from one point to another on the ppf graph (like we did in class) Calculating opportunity costs from tables (like we did in class) The difference between a curved and a linear ppf (increasing vs. constant opportunity costs).
