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Good Question!

20Mx1ca

Things for my intermediate microeconomics students to ask themselves going into the final:

  • Can I graph the effects on equilibrium price and quantity of changes in supply and demand? Can I identify which events will shift which curve, and in which direction?
  • Do I understand the concepts of substitutes and complements? Can I use these concepts to analyze how markets will react to different changes?
  • Can I graph binding and non-binding price ceilings and floors? Do I understand how to measure shortages and surpluses on a graph?
  • Do I understand the properties of indifference curves? Can I recognize indifference curves for perfect substitutes and perfect complements?
  • Could I create a demand schedule?
  • Can I correctly graph a demand schedule, a supply schedule, a production function, a PPF, and a budget constraint line?
  • Do I understand the meaning and significance of the beauty premium, superstar phenomenon, in-kind transfers, bundles of consumption, derived demand, world price, small market assumption, tariff, tax incidence, the ultimatum game, asymmetric information, the signalling theory of education, hidden characteristics, hidden actions, moral hazard and marginal cost and benefit?
  • Do I understand the difference between price discrimination and racial discrimination? Between positive and normative statements? Between movement of the curve and movement along the curve?
  • Can I accurately calculate the slope of a demand curve or a budget constraint line?
  • Do I understand MPL and MRS?
  • Do I understand the difference between PPFs that are straight lines and PPFs that bow outwards?
  • Can I give examples of perfect (or nearly perfect) substitutes and perfect (or nearly perfect) complements?
  • Do I understand the difference between a shift in the budget constraint line and a pivot? Can I graph the effects of a price increase or decrease or an income increase or decrease on the budget constraint line? Can I show how this might change consumption preferences?
  • Do I know how to calculate the slope of a budget constraint line? Can I calculate the marginal rate of substitution between two points?
  • Do I understand the difference between substitution and income effects, and the substitution and output effects? Do understand what an isoquant curve is?
  • Can I graph diminishing marginal utility of income and evaluate “fair” prices for insurance?
  • Can I graph the trade-offs in consumption today and in the future? Do I understand why in some cases an increase in interest might increase savings, and in some cases decrease it? Could I graph that?

 

 

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Categories: Microeconomics
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