ECON 100 Test No 2 Topics
St. Charles Community College
ECON 100 Survey Economics
Spring Semester 2011
Subjects To Be Covered On Test No. 2
- What is the “law of diminishing returns”, and how does that concept apply to the study of economics?
- What is meant by “marginal product”?
- What is a “profit maximizing” firm?
- What are the features of a firm in perfect competition?
- Differentiate among firms operating in perfect competition, monopolist competition, and monopoly.
- Why are production costs and selling costs higher for firms in monopolistic competition than for firms in perfect competition?
- What is a natural monopoly?
- What is meant by the term “market power”?
- In class we said that monopolies can be “fragile”. What is meant by that statement?
- What is meant by the term “barriers to entry”?
- Why do we regulate utilities?
- How is supply and demand determined in the labor market?
- Given the marginal product of labor, how are hiring decisions made?
- How is unemployment determined?
- What are the types of unemployment?
- How do we calculate unemployment?
- What are the weaknesses in the determination of unemployment?
- What are the issues in the minimum wage controversy?
- What is the difference between private goods and public goods?
- What is the difference between private or market costs and social costs?
- What is an economic externality?
- What is meant by the term “internalizing externalities”?