Unformatted text preview: order presented below. You c a n f ind these top i cs in a ny
p r i n c i p l e s o f m i c r o e c onom i c s t e x t boo k .
U n i t 1 : W h a t i s e c o n o m i c s?
Positive vs. normative analysis
Comparing marginal costs and benefits vs. comparing total costs and benefits
Micro vs. Macro Economics
U n i t 2 : A l loc a t i ng sc a r c e r eso u r c es
Budget line model
How to draw it.
Slope reflects opportunity cost.
Shifting (change income, change in one or both prices)
Production possibilities frontier model
Why this shape? What does the shape mean about opportunity cost?
Shifting the PPF (changes in technology, availability of resources, quality of resources)
Trade, comparative advantage and the PPF
The law of increasing opportunity costs
The principle of comparative advantage
U n i t 3 : T h e f u n c t io n i ng o f ma r k e t s a n d p r i c e d e t e r mi n a t io n
Demand (the law of, curve, and schedule) and Determinants of demand (= demand shifters)
Quantity demanded and changes in quantity demanded
Supply (the law of, curve, and schedule) and the determinants of supply (= supply shifters)
Quantity supplied and changes in quantity supplied
Where does the equilibrium price (P*) come from?
Shortages and Surpluses
How changes in one market can affect another market?
Using individual demand curves to construct the market demand curve.
Normal vs. inferior goods
U n i t 4 : U n d e r st a n d i ng c h a nges i n p r i c es a n d q u a n t i t i es : E l a st i c i t y
The price elasticity of demand
elastic vs. inelastic D
determinants of elasticity
changes in elasticity along D curve
measuring elasticity between 2 points on a D curve (midpoint formula)
changes in revenue from price changes
The income elasticity of demand
The cross-price elasticity of demand
The elasticity of supply
U n i t 5 : C o n su me r T h eo r y
Preferences and the budget line revisited
utility (marginal vs. total )
law of diminishing margin...
View Full Document
- Spring '07