Economics Study Guide

Demand and Supply Model I

Question Set #1 (Demand and Supply Model I)
a)Explain in your own words the concepts of the Law of Demand and Law of Supply. Include separate diagrams for each law and provide examples from your own life that follow these laws.
 
 The theory defines what effect the relationship between the availability of a product and the desire/demand for that product has on its price, therefore when there is low supply and high demand, it increases price and vice versa  
 
b)Explain in your own words how the equilibrium price is reached in this model. {Hint: discuss shortages and surpluses}.  Include a diagram and provide an example from your own life where you have observed prices changing due to shortages or surpluses.

c)Explain in your own words how Alfred Marshall combined the theories of previous schools of economic thought to create a synthesis that became the Supply and Demand Model. This is sometimes referred as the first Neoclassical Synthesis.  
 
d)Illustrate with a diagram and explain in your own words what happens to prices and quantity traded when there is a DECREASE in demand. Include an example where you have observed this concept
 
The Labour Theory of Value was one of the most important and used models among the first modern economists. This theory is associated with Classical Economists. Adam Smith, David Ricardo, Robert Malthus, John Stuart Mill used and developed variations of this theory. Karl Marx and subsequent Marxist economists and social scientists have relied on this theory as point of departure for their analysis, as it provides a theoretical possibility to the argument that there is exploitation within capitalism.
Question Set #2 (Labour Theory of Value)
a)Discuss and explain in your own words the Labour Theory of Value. Include an example where you have observed this concept
 
b)Discuss and explain in your own words a criticism of the Labour Theory of Value. Include an example where you have observed that this concept does not apply.
 
c)Discuss how you can apply the Labour Theory of Value to explain the root causes of a social problem or challenge that you have observed. This can be a local or global problem.
 
d)Apply The Labour Theory of Value to explain an event that you have observed during this COVID-19 pandemic.
 
The Law of Diminishing Marginal Utility is one the key concepts in contemporary economics.  This theory is one of the major contributions from earlier marginalist economists, and it can provide the basis of a powerful critique to the Labour Theory of Value.
Question Set #3 (Law of Diminishing Marginal Utility [satisfaction])
a)Discuss and explain in your own words the Law of Diminishing Marginal Utility. Include an example where you have observed this concept.
 
b)Discuss and explain in your own words a criticism of the Law of Diminishing Marginal Utility. Include an example where you have observed that this concept does not apply.
 
c)Discuss how you can apply the Law of Diminishing Marginal Utility to explain the root causes of a social problem or challenge. This can be a local or global problem.
 
d)Apply The Law of Diminishing Marginal Utility to explain an event that you have observed during this COVID-19 pandemic.
 
Adam Smith is considered the pioneer of modern economic thought. He articulated many of the concepts that modern economists share or have used as a reference for their own analysis.
 
Question Set #4 (Adam Smith)
a)Discuss and explain in your own words the concept of Specialization or Division of Labour. Include an example where you have observed this concept
 
b)Discuss and explain in your own words the concept of the “Invisible Hand” or the unintended social benefits of “free markets”. Include an example where you have observed this concept in society.
 
c)Discuss and explain in your own words another concept from Adam Smith that you find interesting. Include an example where you have observed this concept in society.
 
d)Use any concept or Theory from Adam Smith to explain event or policy that you have observed during this COVID-19 pandemic.  
 
David Ricardo is considered another pioneer of modern economic thought. His theories, ideas, and concepts have tremendous influence on the way contemporary economists think about international trade and production processes.
Question Set #5 (David Ricardo)
a)Discuss and explain in your own words the concept that international trade benefits all parties and the theory of Comparative Advantage. Include an example and a diagram where you have observed this concept.
 
b)Discuss and explain in your own words the concept of the “Law of Diminishing Marginal Returns””. Include an example and a diagram where you have observed this concept.
 
c)Discuss and explain in your own words how you can apply any concept from David Ricardo to solve the root causes of a social problem or challenge. This can be a local or global problem.  
 
d)Discuss and explain with the help of any of the concepts you discussed previously from David Ricardo an event or policy that you have observed during this COVID-19 pandemic.
 
Karl Marx is considered one of the most influential thinkers in many social sciences including economics. He has provided the most comprehensive and enduring critique to Capitalism.
Question Set #6 (Karl Marx)
a)Discuss and explain in your own words the concept of Alienation from Marx. Include an example where you have observed or experienced this concept.
 
b)Discuss and explain in your own words the idea that Capitalism creates unequal concentration of economic and political power and explain how both of them relate to each other. Include an example where you have observed this concept.
 
c)Discuss and explain in your own words another concept from Karl Marx that you find interesting and you agree with. Include an example where you have observed this concept.

d)Discuss and explain in your own words another concept from Karl Marx that you do NOT agree with. Provide an example that you have observed that contradicts this concept.
 
Keynes can be considered the most influential economic thinkers of the 20th century. His economic analysis had a huge impact on policy makers and politicians. Modern societies and most industrialized economies have been shaped and organized around Keynesian economic policies and ideas.
 
Question Set #7 (John Maynard Keynes)
a)Discuss and explain in your own words Fiscal Policy and explain how Keynes proposes that Fiscal policy should be used

b)Discuss and explain in your own words the concept of the Multiplier. Include an example where you have observed this concept. c)Discuss and explain in your own words how Fiscal Policy or a “Keynesian policy” has inadvertently created a social or environmental problem.

d)Include an example where you have observed a “Keynesian policy” applied during the COVID 19 pandemic and provide a possible critique or improvement.
 
Milton Friedman is one of the most influential economic thinkers toward the end of the 20th century. He has provided very persuasive and powerful critiques of Keynesian economic policies.  
 
Question Set #8 (Milton Friedman)
a)Discuss and explain in your own words Monetary Policy and the trade off that exists between reducing unemployment and increasing inflation. Please make sure to illustrate the trade off in a graph

b)Discuss and explain in your own words the views of Milton Friedman about the effects of Monetary Policy on Prices and Output in the long run.
c)Discuss and explain in your own words how Monetary Policy has inadvertently created a social or environmental problem.

d)Include an example where you have observed a “Monetary Policy” applied during the COVID 19 pandemic and provide a possible critique or improvement.  
 
The field of economics has been enriched by a multitude of thinkers that have provided important insights into our understanding of our economies and societies. You do not need a degree in Economics or business to understand or appreciate their contributions. It is up to you to discover their ideas.
 
Question Set #9 (Other Economists)
a)Discuss and explain in your own words a concept from Friedrich Hayek that you find interesting and has helped to shape a Neoliberal Policy. Provide a critique OR provide evidence that supports this policy.
 
b)Discuss and explain in your own words a concept or theory from Ludwig Von Misses that constitutes a criticism of centrally planned economies or “socialism” and favours capitalism or market-oriented economies. Provide a brief definition of capitalism and centrally planned economies in your answer.  
 
c)Discuss and explain in your own words a concept or theory from a male economist from the 20th century, who has not been discussed in this exam, that you find interesting. How can you apply his theory to propose a policy that would aim to solve a social, cultural, or environmental problem?
 
d)Discuss and explain in your own words a concept or theory from a male economist from the 19th century, who has not been discussed in this exam, that you find interesting. How can you apply his theory to propose a policy that would aim to solve a social, cultural, or environmental problem?
 
The field of Economics have been traditionally dominated by men. Over centuries, women have been systematically excluded from economic textbooks or academic positions. However, they have made important contributions that usually have not been acknowledged.  Question Set #10 (Female Economists and Evolution of Economic Thought)
a)Discuss and explain in your own words a concept or theory from a female economist from the 20th century, who has not been discussed in this exam, that you find interesting. How can you apply his theory to propose a policy that would aim to solve a social, cultural, or environmental problem?
 
b)Discuss and explain in your own words a concept or theory from a female economist from the 19th century, who has not been discussed in this exam, that you find interesting. How can you apply his theory to propose a policy that would aim to solve a social, cultural, or environmental problem?

c)Historical and social events generate economic concepts and theories. Discuss in your own words a theory that you like and explain how this theory was created as result of an economist observing an historical or major social event. You can use a female or male economist to answer this question.
 
d)Economic concepts and theories can shape the development of historical and social events. Discuss in your own words a theory that you like and explain how this theory helped shaped a historical or major social event. You can use a female or male economist to answer this question.