Economics - Unit 1 NON-QUIZ

GUIDELINES: This isn't a test or a quiz, I'm not going to mark it. I just want to
see what you remember, what you don't remember, and what you might
have never seen, in Unit 1.
Try to answer these questions as quickly as possible. Your answers should be
very short, most of them can be one line only. If you don't remember the
answer, just put 'don't remember' or something similar. If you've never seen
or heard of the concept in the question, put 'don't know' or something
similar.
1. Define scarcity.
2. State what the law of diminishing returns says.
3. What is the difference between positive and normative statements?
4. What do the terms 'cardinal utility' and 'ordinal utility' mean?
5. Define the income and substitution effects of a price change.
6. What is the equi-marginal principle?
7. Give a quick idea of what normal, inferior and Giffen goods are.
8. What is meant by 'consumer surplus' and 'producer surplus'?
9. What is the relationship between price-elasticity of demand and Total
Revenue from the sale of the product?
10. Define 'effective demand'.
11. What is cross elasticity of demand?
12. What is a production function?
13. Do a very quick sketch of typical Total Product, Average Product and
Marginal Product curves.
14. What's the difference between returns to scale and economies of scale?
15. What is a market?
16. Name 3 or more goals of the firm, apart from profit maximisation.
17. Give formulae for the 4-firm Concentration ratio, and HerfindahlHirschman Index (HHI).
18. What is a public good?
19. What is a demerit good?
20. What is a deadweight loss?
21. Define Pareto efficiency.
22. Name the 2 types of labour mobility, and define them briefly.
23. What is a compensating differential, also known as an 'equalising
difference'?
24. What are efficiency wages?
25. Outline the difference between absolute and relative poverty.
26. Name 2 measures of poverty.
27. Name 3 remedies that governments (or other organisations) use to try to
alleviate poverty.