Important Topics for Exam #1

All topics covered in Class and Textbook

A quick overview of my notes shows the following would be important. (This list is not guaranteed to be complete)

Basics

What is Economics?

Basic Questions of Economics.

Efficiency, Endowments, Resources,

Topics in HW#0 (Mathematical Review)

HOW TO SOLVE A CONSTRAINED OPTIMIZATION PROBLEM

Utility and Preferences

Cardinal and Ordinal Utility measures.

Axioms regarding preferences.

Basic 1 word (common sense) defn's

Graphically: How to find violations of assumptions

(Ex. If indifference curves cross which assmptn is violated)

Budget Constraints (Feasible Sets)

Impact of price and income changes

Impact of Lump-Sum and Per Unit Taxes

CONSTRAINED OPTIMIZATION: Graphically and Mathematically

Topics from HW#1.

Consumer Demand:

Engel Curves, Demand Curves (graphically and def'n),

Normal / Inferior Goods.

Substitutes / Compliments

Changes in Demand / Changes in Quantity Demanded.

Topics in HW#2

Elasticity:

Def'n in words and mathematically.

Elastic / Inelastic / Unit Elastic

Given demand fct'n find point elasticities (HW#2)

Other Important Topics

Demand Curves: (Deriving from Max'ing Utility subj. to a budget constraint)

Income and Substitution Effects. (Def'n and graphically.)

Compensated Demand curves (mainly graphically in (x, px) space.)

Slutsky Eq'n

Consumer Surplus.