Summary Study Outline for Econ S10b Midterm Exam Harvard University, Summer School

Study Outline for Econ S10b Midterm Exam Harvard University, Summer School Note: The assigned readings are potential sources for exam questions. I will NOT ask narrow factual questions about these readings, but you should be able to relate their main arguments to the material we have discussed in class. Note: The following outline does NOT cover everything we have studied in the class. All concepts and applications that we have discussed in class are possible exam topics. Good items to study would be the class slides, the class notes, and the solutions to the problem sets. If something seems unfamiliar, check your notes, the posted notes, and then, if you still have questions, email me or stop by TA office hours. 1. Basics economic concepts a. Cost-benefit analysis, especially when applied to “how much” decisions b. Absolute and comparative advantage c. Supply and demand; Efficiency and surplus 2. Measuring GDP: Definition and methodology a. “Production” definition: value of final goods and services… b. Principles for measuring GDP: utilize market prices i. In a period: value-added method ii. What is NOT counted? c. Expenditure on final goods and services