1.         First make a distinction between microeconomics and macroeconomics, and then provide examples of each.

2.         Principles of economics, including opportunity cost and scarcity.

1. Using your own words define opportunity cost. What is the opportunity cost to you of attending college? Some professional athletes like Kobe Bryant, LeBron James, and Tiger Woods skipped college to become professional athletes. In relation to the concept of opportunity cost, explain the logic behind these athletes skipping college.

Distinguish between scarcity and a shortage. How does each occur and how can each be eliminated?

3.         supply and demand; extensions of supply and demand. 

1. State the law of demand in relation to price. Explain the difference between a change in quantity demanded and a change in demand. Other than price, discuss the determinants of demand.
2. State the law of supply in relation price. Explain the difference between a change in quantity supplied and a change in supply. Other than price, discuss the determinants of supply.
3. Explain what happens if the price is above the equilibrium price? What happens if the price is below the equilibrium price? What is the rationale behind price controls, such as price ceilings and price floors? Give examples of price controls and explain the inefficiencies resulting from both.
4. In the United States, State Attorney Generals generally enforce anti-price gouging laws following natural disasters, such as Hurricane Katrina, Sandy, etc. Do a Google search on anti-price gouging and explain what they are. Discuss the pros and cons of “anti-price-gouging” legislation in terms of its effect on the consumer welfare. 

4.         Elasticity of demand and Supply

1. What does the price elasticity of demand explain? Distinguish between elasticity demand and inelastic demand. What type of goods would be elastic and inelastic? 

5.         The Firm: Cost and Output Determination

1. What is the difference between the short run and the long run? What is the appropriate time dimension of the long run? Discuss the short run costs.
2. Explain how you can calculate average physical product and marginal physical product from information on total physical product and variable input. What is the law of diminishing marginal product? Is diminishing marginal physical product a realistic concept for describing the real world production? Explain.

6.         Perfect Competition

1. Discuss the main characteristics of a perfectly competitive firm? 
2. Describe and explain how a perfectly competitive firm determine how much to produce (its profit maximizing output), exit decision, and shut down decision.
3. Paulo’s Ping Pong Balls is a firm that operates in a competitive market. The ping pong balls sell for $3 per package. Fill in the following table and determine the profit-maximizing level of output.

Output	Price	Total Revenue	Total Cost	Profit	Marginal Revenue	Marginal Cost
0	$3	$0.00	$1.50
1	3	3.00	2.00
2	3	6.00	3.00
3	3	9.00	4.50
4	3	12.00	6.50
5	3	15.00	9.00
6	3	18.00	12.00
7	3	21.00	15.50
8	3	24.00	19.50
9	3	27.00	24.00

7.         Monopoly

1. What is a monopoly? Discuss the characteristics of a monopoly and explain how the government is involved in creating a monopoly. Why might the government create one? Give examples. 
2. The National Collegiate Athletic Association (NCAA) controls the market for college athletes. It sets the amounts paid to these athletes below what they would be in a competitive market and ensures that colleges do not violate the rule that it lays down. Thus to a large extent, the NCAA operates like a monopoly. Discuss the extent to which the NCAA is a monopolist.
3. Who benefits and who loses from the NCAA's control of the market for college athletes?
4. Is the system operated by the NCAA efficient? Explain.
5. 
   

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1 Macro economics is the study of the behaviour of an economy as a whole For example inflation and unemployment While micro comics studies economics at individual level for example studying about indi... View the full answer