ECON 100 Test No 1 Topics

St. Charles Community College
ECO 100 Survey Economics
  Spring Semester, 2011

Subjects Covered On Test No. 1

  • Opportunity Costs
    • The production possibilities curve.
    • The law of increasing opportunity costs.
  • Supply and Demand
    • What is a demand schedule.
    • What causes a demand curve to shift.
    • What is a supply schedule.
    • What causes a supply curve to shift.
    • What is equilibrium in the micro sense.
    • What is meant by consumer surplus.
  • Excess supply and excess demand
    • What causes excess supply and excess demand.
    • What are the results of excess supply and excess demand.
  • Utility theory
    • What is marginal utility.
    • The relationship between marginal utility and total utility.
    • Why does the demand curve for a good or service have a negative slope.
    • Maximizing utility.
    • How marginal utility affect decision making.
  • Price elasticity
    • Definition of price elasticity.
    • Calculation of price elasticity.
    • How price elasticity affects product demand.
    • The relationship of demand, price elasticity, and total revenue.
  • What is the purpose of advertising