econ

Chapter 1: Principles of economics

· Opportunity costs

· Trade-offs/decisions at the margin

· Assignment 1, part 1

Chapter 2: Trade-offs and trade:

· Production possibilities frontier (PPF)

· The theory of comparative advantage

· Absolute advantage

· Assignment 1, part 2

Chapter 3: Supply and Demand

· Laws of demand and supply

· Shifters of demand and supply versus movements along the curves

· Equilibrium and disequilibrium (excess and shortage)

· Assignment 2, part 1

Chapter 6: Elasticity

· Calculation and interpretation of elasticity

· Impacts of price changes when a good is elastic/inelastic

· Impacts of price changes on related goods

· Impacts of changes in income on demand for goods

· Assignment 2, part 2

Chapter 4: Consumer and producer surplus

· Consumer surplus

· Producer surplus

· Market efficiency

· Assignment 3, Q1

Chapter 5: Price Controls and Quotas

· Price ceilings and floors

· Impacts of price controls (side effects and DWL)

· Quotas, quota rent and DWL

· Assignment 3, Qs 2 – 7

Chapter 7: Taxes

· Impacts of taxes and prices and quantities

· Impacts of taxes on society (DWL)

· Tax burden (impacts of elasticity)

· Tax revenue

· Assignment #3, Qs 9-10

Chapter 8: International Trade:

· Import competing versus export oriented economies

· Autarky versus free trade

· Impacts of opening borders on welfare

· Impacts of tariffs on domestic economy (domestic production, consumption, prices and welfare)

· Arguments for trade protection

· The Hecsher-Ohlin Model

· Assignment #4

Production Theory

· The production function (TPP, MPP, APP)

· The Law of Diminishing Returns

· Stages of production

· Cost concepts (fixed, variable, marginal, total, average, minimum-cost output)

· Assignment #5 (paper airplane company)

· Assignment #6, part 1, Q1

Chapter 12: Perfect Competition

· Characteristics of perfect competition

· Optimal production under perfect competition

· Assumptions regarding prices in perfect competition

· Profit, loss and breakeven

· The supply curve (short run versus long-run)

· Assignment #6, part 1, Qs 2-4

Chapters 13: Monopoly

· Monopolies and market power (as opposed to perfect competition or monopolistic competition)

· Decision making of the monopolist regarding quantity and prices

· Impacts of a monopoly on welfare

· Assignment #6, part 2, Qs 1-3

Chapters 14/15: Imperfect Competition

· Oligopolies and duopolies

· Game theory—Prisoners dilemma

· Cooperative versus non-cooperative behavior

· Characteristics of monopolistic competition

· Assignment #6, part 2, Qs 3-5