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| | This is the final lecture of this course. | | This is the final lecture of this course. |
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| − | Your Instructor's appearance on the ''Colbert Report'' last week was replayed again by its producers the following Monday evening. Let's consider that in economic terms. This show is funded by advertisements, and the advertisers pay higher amounts depending on how many watch a show. By choosing to rerun this particular show again the following Monday, its producers probably felt it could attract a higher viewership than other shows, and thereby maximize advertising revenue. Alternatively, Stephen Colbert may have liked the high quality of this particular show and chose to replay it for that reason, or perhaps he chose it for its educational value. | + | Your Instructor's appearance on the ''Colbert Report'' last week was replayed again by its producers the following Monday evening. Let's consider that in economic terms. This show is funded by advertisements, and the advertisers pay higher amounts depending on how many watch a show. By choosing to rerun this particular show again the following Monday, its producers probably felt it could attract a higher viewership than other shows, and thereby maximize advertising revenue. Alternatively, Stephen Colbert may have liked the high quality of this particular show and chose to replay it for that reason, or perhaps he selected it again for its educational value. |
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| | Several of our students in this class are starting a new homeschooling publication, which will soon be announced on ''Conservapedia.com'' and available online. A student who took this class in 2007 and who is now excelling in college is publishing this observation: | | Several of our students in this class are starting a new homeschooling publication, which will soon be announced on ''Conservapedia.com'' and available online. A student who took this class in 2007 and who is now excelling in college is publishing this observation: |
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| | Questions about inputs to a firm focus on what a firm will do with its inputs (usually labor, but sometimes capital) in order to maximize its profits. The questions usually concern the following: | | Questions about inputs to a firm focus on what a firm will do with its inputs (usually labor, but sometimes capital) in order to maximize its profits. The questions usually concern the following: |
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| − | #impact of improvement in technology on production for a firm | + | #impact of improvement in technology on the production by a firm |
| | #adjusting inputs to minimize the overall cost at a constant level of output | | #adjusting inputs to minimize the overall cost at a constant level of output |
| | #minimum wage and effect on competition for labor | | #minimum wage and effect on competition for labor |
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| | Review the above list now. How many of the above 9 topics do you know well enough to answer a question about them correctly? Let's briefly review each of these concepts so you can maximize your score on this big chunk of the exam. | | Review the above list now. How many of the above 9 topics do you know well enough to answer a question about them correctly? Let's briefly review each of these concepts so you can maximize your score on this big chunk of the exam. |
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| − | 1. "impact of improvement in technology on production for a firm" | + | 1. "the impact of an improvement in technology on the production by a firm" |
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| | + | :If technology improves, as in helpful new inventions or advances in communication (like the internet), then this helps shift the Production Possibilities Frontier (Curve) ''outward''. A firm can produce more output now. So an improvement in technology enables a firm ''to increase supply''. |
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| | 2. "adjusting inputs to minimize the overall cost at a constant level of output" | | 2. "adjusting inputs to minimize the overall cost at a constant level of output" |