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Table of contents
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0. Basic Principles of Economics
Worksheet
Introduction to Economics
People Are Rational
People Respond to Incentives
Scarcity and Choice
Marginal Analysis
Allocative Efficiency, Productive Efficiency, and Equality
Positive and Normative Analysis
Microeconomics vs. Macroeconomics
Factors of Production
Circular Flow Diagram
Graphing Review
Percentage and Decimal Review
Fractions Review
1. Reading and Understanding Graphs
Worksheet
Graphs of Two Variables
Relationships between Variables
Interpreting Graphs, Correlation, Causation, and Omitted Variables
Slope of Linear Graphs
Slope of a Curve at a Point
Finding the Maximum and Minimum Points on Graphs
Percentage and Decimal Review
Fractions Review
Areas of Shapes
2. Introductory Economic Models
Worksheet
Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency
PPF - Increasing Marginal Opportunity Costs and Allocative Efficiency
PPF - Outward Shifts
PPF - Comparative Advantage and Absolute Advantage
PPF - Comparative Advantage and Trade
PPF - The Price of the Trade
3. The Market Forces of Supply and Demand
Worksheet
Competitive Markets
The Demand Curve
Shifts in the Demand Curve
Movement Along a Demand Curve
The Supply Curve
Shifts in the Supply Curve
Movement Along a Supply Curve
Market Equilibrium
Using the Supply and Demand Curves to Find Equilibrium
Effects of Surplus
Effects of Shortage
Supply and Demand: Quantitative Analysis
4. Elasticity
Worksheet
Percentage Change and Price Elasticity of Demand
Elasticity and the Midpoint Method
Price Elasticity of Demand on a Graph
Determinants of Price Elasticity of Demand
Total Revenue Test
Total Revenue Along a Linear Demand Curve
Income Elasticity of Demand
Cross-Price Elasticity of Demand
Price Elasticity of Supply
Price Elasticity of Supply on a Graph
Elasticity Summary
5. Consumer and Producer Surplus; Price Ceilings and Floors
Worksheet
Consumer Surplus and Willingness to Pay
Producer Surplus and Willingness to Sell
Economic Surplus and Efficiency
Quantitative Analysis of Consumer and Producer Surplus at Equilibrium
Price Ceilings, Price Floors, and Black Markets
Quantitative Analysis of Price Ceilings and Price Floors: Finding Points
Quantitative Analysis of Price Ceilings and Price Floors: Finding Areas
6. Introduction to Taxes and Subsidies
Worksheet
Introducing Taxes and Tax Incidence
Effects of Taxes on a Market
Elasticity and Taxes
Subsidies
The Laffer Curve
Quantitative Analysis of Taxes
Tax Efficiency
Tax Equity
7. Externalities
Worksheet
Externalities: Social Benefits and Social Costs
Public Solutions to Externalities
Private Solutions to Externalities: The Coase Theorem
8. The Types of Goods
Worksheet
Four Types of Goods and Two Characteristics
The Free Rider Problem and the Tragedy of the Commons
Public Goods: Demand Curve and Optimal Quantity
9. International Trade
Worksheet
Exporting and Importing
Sources of Comparative Advantage
Tariffs on Imports
Import Quotas and VERs
Arguments Against International Trade
10. The Costs of Production
Worksheet
Revenue, Cost, and Profit
The Production Function and Diminishing Returns
Marginal Cost
The Relationship Between Average Cost and Marginal Cost
Graphing Costs
Average Total Cost: Short Run and Long Run
Isoquant Lines
Isocost Lines
Cost-Minimizing Combination of Labor and Capital
11. Perfect Competition
Worksheet
Introduction to the Four Market Models
Characteristics of Perfect Competition
Revenue in Perfect Competition
Perfect Competition Profit on the Graph
Short Run Shutdown Decision
Long Run Entry and Exit Decision
Individual Supply Curve in the Short Run and Long Run
Market Supply Curve in the Short Run and Long Run
Long Run Equilibrium
Perfect Competition and Efficiency
Four Market Model Summary: Perfect Competition
12. Monopoly
Worksheet
Characteristics of Monopoly
Monopoly Revenue
Monopoly Profit on the Graph
Monopoly Efficiency and Deadweight Loss
Price Discrimination
Antitrust Laws and Government Regulation of Monopolies
Mergers and the Herfindahl-Hirschman Index (HHI)
Four Firm Concentration Ratio
Four Market Model Summary: Monopoly
13. Monopolistic Competition
Worksheet
Characteristics of Monopolistic Competition
Revenue in Monopolistic Competition
Monopolistic Competition Profit on the Graph
Monopolistic Competition in the Long Run
Efficiency in Monopolistic Competition
Advertising
Four Market Model Summary: Monopolistic Competition
14. Oligopoly
Worksheet
Characteristics of Oligopoly
One-Time Games and the Prisoner's Dilemma
Game Theory and Oligopoly Profit
Repeated Games
Kinked-Demand Theory
Four Market Model Summary: Oligopoly
15. Markets for the Factors of Production
Worksheet
The Production Function and Marginal Revenue Product
Demand for Labor in Perfect Competition
Shifts in Labor Demand
Supply of Labor in Perfect Competition
Shifts in Labor Supply
Differences in Wages
Discrimination
Other Factors of Production: Land and Capital
Unions
Monopsony
Bilateral Monopoly
16. Income Inequality and Poverty
Worksheet
Income Inequality in the USA and Worldwide
Poverty
Polices to Reduce Poverty
Lorenz Curve and Gini Coefficient
Income Equality and Efficiency
17. Asymmetric Information, Voting, and Public Choice
Worksheet
Asymmetric Information: Adverse Selection and Moral Hazard
Solutions to Informational Problems
Median Voter Theorem
Condorcet Voting Paradox
18. Consumer Choice and Behavioral Economics
Worksheet
Budget Constraint
Indifference Curves
Indifference Curves for Perfect Substitutes and Perfect Complements
Consumer Optimum Consumption: Budget Constraint and Indifference Curves
Consumer Optimum Consumption: Marginal Utility per Dollar Spent
12. Monopoly
Antitrust Laws and Government Regulation of Monopolies
12. Monopoly
Antitrust Laws and Government Regulation of Monopolies
Previous Topic: Price Discrimination
Next Topic: Mergers and the Herfindahl-Hirschman Index (HHI)
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