Download Econ 300 Spring 2009 Second Midterm Review: Key Concepts and Preparation and more Exams Economics in PDF only on Docsity! Econ 300 Review Sheet for Second Midterm, Spring 2009 As was the case for the first midterm, the upcoming exam will pose questions on: terminology and notation why economists use math calculations typically applied by economists to solve economic problems We recommend that you prepare for the exam by completing two different types of tasks, described below as A and B. A. Work through the concepts listed below and make sure for each term you can recognize and apply: the definition in words (in some cases what we have called “intuitive meaning”), any corresponding mathematical expression, formula, or graph the relevance to economic analysis As you do this, you should create a "cheat sheet" on a standard sheet of paper (two‐sided). You can put whatever you like on this sheet of paper in whatever form you like, and can use it during the exam. You should include the 8 rules of differentiation on your cheat sheet, and know how to apply each rule. Some of the concepts listed are mathematical terms which can be applied to economics, and some are economic terms that have a mathematical formulation; either way, you should understand the linkage between math and economics demonstrated by each concept. Some examples of these types of questions are provided to help you anticipate the way a concept leads to a question. More generally, you might find it useful to take each concept on the list and think of one or two possible exam questions similar to the examples but relevant to that particular concept. B. You should review all of the problem sets 1‐4, and the exercises presented in lecture and in discussion section, as many of the calculation‐type problems on the exam are drawn from these exercises. Other exercises presented in the book are good sources of review, and at least one or two exam questions will reflect the other exercises found in the book. You should take the prior exam, which is on the course web site. After you complete the exam (which should take you less than 50 minutes!), you should check your answers with the answers posted on the course web site. Problems you did not get correct are a good indicator of where you need to do additional work. List of Key Concepts and Terminology first derivative of a univariate function second derivative of a univariate function the relationships between second derivatives and concavity or convexity of a function elasticity (point versus arc, income elasticity, own‐price versus cross‐price elasticity, etc., inelastic versus elastic versus unit elastic) average and marginal as applied to production or cost functions first‐order partial derivative of a multivariate function with respect to a specific independent variable second‐order partial derivative of a multivariate function with respect to a specific independent variable bivariate function diminishing marginal returns
