CHAPTER 1: SECTIONS 01&02

Concepts: Scarcity, opportunity cost, tradeoffs, rational choice, factors of production

APPENDIX TO CHAPTER 1
Graphs that have maximum and minimum; slopes of curves

CHAPTER 2: SECTION 4
Explain how specialization and trade expand production & consumption possibilities.
SLOPE AND INTERPRETATION OF PPFS.

CHAPTER 3: SECTIONS & CONTENTS

4. Explain how demand and supply determine prices and quantities bought and
sold.
5. Use the demand and supply model to make predictions about changes in prices
and quantities.

CHAPTER 4
CONCEPT WITH A FOCUS ON INTERPRETATION OF ELASTICITY OF DEMAND
ELASTICITY OF DEMAND AND TOTAL REVENUE / EXPENDITURE (= SPENDING)

CHAPTER 5
A) define consumer surplus by using the connection between demand and
marginal benefit; and B) define producer surplus using the connection between
supply and marginal cost.
Explain the main ideas about fairness and evaluate claims that markets result in
unfair outcomes
NOT NECESSARY TO KNOW SPECIFICS OF FAIRNESS; JUST THE IDEA AND THE
TRADEOFF BETWEEN EFFICIENCY AND EQUITY.

CHAPTER 6
GENERAL IDEA OF PRICE RESTRICTION. EXTEND IT TO QUANTITY RESTRICTION.

SKIPPED CHAPTER 7, ALL THE CONTENTS OF THE REMAINING CHAPTERS: 8, 10 13,

AND 15 COVERED IN THE CLASS WILL BE ON THE EXAM.