ECON-1007EL Study Guide - Final Guide: Overnight Rate, Normal Good, The Overnight
26 Jun 2018
School
Department
Course
Professor
2017-12-18'
1'
ECON 1007
Exam Review
! 6 Short Answer questions
! 50 Multiple Choice
! Study the reviews from test 1 and 2.
! Study the new material covered since test 2.
Generally
! Don’t study like it’s high school.
! Learn by doing.
! Uncover the intuition.
! “think like an economist.” This means thinking
carefully and analytically about incentives and how
people and firms respond to these incentives.
! Ask your own questions.
! Talk to others.
Start early
! Ask your instructor for an exam outline and what to
expect on the exam
! Overview - review your notes and any assignments
you had
! Big Ideas - review the course's main ideas
! Small Ideas - for each big idea review its sub-topics
and supporting details
! Practice - use old exams to get a feel for the style of
questions you might be asked
Set up
! Be realistic - no one can study for 8 hours a day
! Make sure you get plenty of food, sleep and
relaxation
! Try to study in the same place at the same time
every day
! At the beginning of each study period review the last
thing you studied for 10 minutes
! Rewrite your notes - it can help you retain information
! Read your notes out loud
! If you don't complete a particular task, don't worry just
carry it over to your next session
! Don't simply memorize facts - ask yourself broad open-
ended questions about the material that's been covered
2017-12-18'
2'
Night Before the Exam:
! Sleep!
! Try to just review - don't try to learn anything new
! Picture yourself succeeding - One of the key
elements for many world-class performers is
visualization
Day of the Exam:
! Eat - don't skip the meal before your exam - not
eating can result in tiredness and poor
concentration.
! Arrive just a few minutes before your exam to avoid
the usual wide-spread and contagious panic
In the Exam:
! Read all of the questions (except multiple choice)
before beginning, and write notes on the paper for
anything important that occurs to you as you read.
! If you're having a problem with one question move
on and return to the problem question if you have
time left at the end.
! Watch the clock
Last minute success
! Pick the most important subjects from your material
! Look over your lecture notes, or someone else's if you
don't have any, and see what the lecturer focused on.
Concentrate your cramming on these broad areas. You
don't have time to learn specifics.
! The key to cramming is memorization so it only works
for "knowledge" questions. Focus on material that can be
memorized.
! Spend 25 percent of your time cramming and 75%
drilling yourself. Recite and Repeat the information
Last minute success
! Relax: being upset at yourself for not studying
earlier won't help and may hurt your performance
in the class
! Remember how you felt while studying and while
writing the exam and plan to study earlier next
time!
EXTRA
! https://www.youtube.com/watch?v=8W0iZk8Yxhs
2017-12-18'
3'
Opportunity Cost
! Opportunity Cost: The value of the next-best
alternative that must be forgone in order to
undertake an activity
! Rational decisions depend upon opportunity costs
! Opportunity cost is value of the next best alternative
! A crucial economic concept with many practical
applications
© 2009 McGraw-Hill
Ryerson Limited
Applying Cost-Benefit Principle
Ch
1
-13
Sunk Costs and Decision-
making
! Sunk costs are those costs that will be incurred
whether or not an action is taken
! E.g., money that you cannot recover
! Therefore irrelevant to decision on whether to take
an action
! Should NOT be counted for decision-making
purposes
! Rational decision makers compare benefits to only
the additional costs that must be incurred
© 2009 McGraw-Hill
Ryerson Limited
Pitfall 2: Failure to Ignore Sunk Costs
Ch
1
-14
Pitfall 3: Failure to Understand The Average and
Marginal Distinction
! Marginal cost
! The increase in total cost that results from carrying out one
additional unit of an activity
! Marginal benefit
! The increase in total benefit that results from carrying out
one more unit of an activity
! Average cost
! Total cost of undertaking n units of an activity divided by n
! Average benefit
! Total benefit of undertaking n units of an activity divided
by n
© 2009 McGraw-Hill
Ryerson Limited
Failure to Understand the Average-Marginal Distinction
Ch
1 -
15
Weighing Marginal Benefits And
Marginal Costs Graphically
© 2009 McGraw-Hill
Ryerson Limited
Pitfall 3: Failure to Understand the Average-Marginal Distinction
Ch
1
-16
Graphing the Equation of
a Straight Line II of II
© 2009 McGraw-Hill
Ryerson Limited
Graphing the Equation of a Straight Line
Ch
1
-17
The graph of the equation B =5 + 0.10T is the straight line shown;
its vertical intercept is 5, and its slope is 0.10
Vertical Intercept
(Constant) is 5
Slope = Rise/Run
Slope = 2/20 = 0.1
Constructing Equations and
Graphs from Tables
© 2009 McGraw-Hill
Ryerson Limited
Constructing Equations and Graphs from Tables
Ch
1
-18
Point A
Point C
Vertical Intercept
(Constant) is 10
Slope = Rise/Run
Slope = 1/20 = 0.05
The Equation For the Billing
Plan: B = 10+ 0.05T
Document Summary
Study the reviews from test 1 and 2. Study the new material covered since test 2. Think like an economist. this means thinking carefully and analytically about incentives and how people and firms respond to these incentives. Ask your instructor for an exam outline and what to expect on the exam. Overview - review your notes and any assignments you had. Big ideas - review the course"s main ideas. Small ideas - for each big idea review its sub-topics and supporting details. Practice - use old exams to get a feel for the style of questions you might be asked. Be realistic - no one can study for 8 hours a day. Make sure you get plenty of food, sleep and relaxation. Try to study in the same place at the same time every day. At the beginning of each study period review the last thing you studied for 10 minutes.
