Economics is the study of

Define opportunity cost and provide an example

Define incentive and provide an example

Marginal Cost and Marginal Benefit

Production Possibilities Curve
• What does it represent
• What is the area inside and outside the curve

Demand and Supply Curves
• 2 types of movements
• What causes movements along curves
• What causes shifts of demand curves
• What causes shifts of supply curves
• Which way do they move and how are equilibrium P&Q impacted
• Identify equilibrium P & Q on graph and in table

Importance of Private Property

Elasticity (Demand and Supply)
• Elastic – relatively larger changes in quantity in relation to price changes
• Inelastic – relatively smaller changes in quantity in relation to price changes
• What factors determine elasticity
• How to calculate

Comparable Advantage
• What determines it
• What is it used to determine

Specialization
• What is it and why is it important

Calculating and Identifying Producer
Surplus, Consumer Surplus, Total benefit of trade
• For individuals and markets
• Identify how they change due to Price Ceilings, Floors
(which requires knowing how price ceilings and floors impact quantity supplied and quantity demanded, whether that is a surplus or shortage)

How resource and product markets interact
• How are resource markets impacted by changes in product markets

Black markets
• What are characteristics Interpreting graphs of excise tax impact

Black markets
• What are characteristics

Black markets
• What are characteristics

Interpreting graphs of excise tax impact

Determining who actually pays excise taxes
(identify graphically and explanation)

Know and interpret Laffer curve