Macroeconomics

ECON 2200 Exam 1 Study Guide

ECON 2200 Macroeconomics Exam 1 Study Guide—Spring 2018 Semester

Exam 1 will cover chapters 1-3 & 24 of the McConnell and Brue textbook, chapters 1-4 from Economics in One Lesson, the segments from the PBS Commanding Heights video, and the other class discussions, presentations, and materials. No notes, books, or other materials may be used during the exam.

The first section of the exam will include multiple choice questions. Each of the multiple choice questions will be worth one point. Some suggested areas include, but are not limited to:

 Refer to the questions from the quizzes. Some of these questions may reappear on exam 1.

 Several questions may cover the topic of supply and demand curves and price dynamics, including scenario questions that will involve the determination in changes in supply, demand, equilibrium price, and quantities supplied and demanded.

 Several questions may cover the chapters in Economics in One Lesson (Hazlitt). A link to this book is available on Blackboard.

 Several questions may cover the PBS Commanding Heights video. The second section of the exam will contain several (5-10) short answer questions. These questions can be answered with several words or a sentence at most. The third section of the exam will have 2 of the following short essay questions. Each of the two essay questions will be worth 25 points each. As mentioned in class, these are short essays (at least 2 paragraphs in length). Essays are graded on content and clarity. 1. According to Adam Smith or Karl Marx, what should the role of the government be in

terms of the economy? Identify and explain three key points from the perspective of Smith or Marx. Do you agree or disagree? Provide three reasons to support your answer.

2. List and explain three reasons why national economies which have a market

economic system tend to be more successful and prosperous than national economies which have a command economic system. Be specific in your answer.

3. Identify one national economy that has an economic system that is either command

or market based. Provide three reasons from the online Index of Economic Freedom to support your answer.

4. List and discuss the four most important features of a market economy that help

businesses and entrepreneurship to flourish. Be sure to provide explanations for each feature to support your answer.

5. What does Hazlitt mean in chapter 3 of Economics in One Lesson when he says that

this variation on the broken window fallacy confuses need with demand? What does effective economic demand require?

An optional study session will be available as announced by the instructor during class.

ECON 2200 Exam 1 Study Guide