Principles of Microeconomics,
ECNS 201 Section 2, Exam #1 Essay Questions
2 questions will be asked, then an additional for extra credit.
- Briefly define productivity and explain its relationship to a country’s standard of living (13-14).
- Draw and label the circular flow economic model (24-24).
- Draw and label a simple production possibility frontier that is bowed out. Label and explain all regions, explain what the frontier actually is and why it is bowed. Where is consumption, and can that point ever be beyond the curve and why? What are the limitations of this model? (26-28, 50-53)
- Draw and label a standard supply and demand curve, labeling all axis and curves. Show a shortage, then a surplus, and what the consequences of those conditions are. Then give an example of how the demand curve and the supply curve shift and why (77-84).