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CHAPTER 1
scarcity
productive efficiency
allocative efficiency
economic growth
5Es
how do each of the 5Es reduce scarcity?
ceterus paribus
4 types of resources
labor
capital (and investment)
entrepreneurial ability
inverse relationship
direct relationship
economizing problem = necessity of choice
PPC
Benefit Cost Analysis
CHAPTER 2
The "isms"
Circular Flow Model
CHAPTER 3
definition of DEMAND
definition of SUPPLY
law of demand
income effect
law of diminishing marginal utility
substitution effect
law of supply
market equilibrium
non-price determinants of D
non-price determinants of S
change in demand
change in quantity demanded
change in supply
change in quantity supplied
complements
substitutes
normal goods
inferior goods
the market system and efficiency
CHAPTER 5
MSB (marginal social benefits)
MSC (marginal social costs)
what we get
what we want
price ceiling
price support
economic functions of government
spillover costs
Coase Theorem
spillover benefits
public goods
exclusion principle
free-rider problem
indivisible goods
stabilization
market for externality rights
CHAPTER 4
price elasticity of Demand
price elasticity of Supply
incidence of a tax
excise tax
efficiency loss of an excise tax
cross elasticity of demand
income elasticity of demand
CHAPTER 6
utility
total utility (define and graph)
marginal utility (define, calculate, graph)
law of diminishing marginal utility
find the utility maximizing quantities to consume
utility maximizing rule
short run
long run
law of diminishing marginal returns
law of diminishing MU
CHAPTER 7
explicit costs
implicit costs
economic vs. accounting costs
normal profit
be able to calculate, define, and find on a graph
be able to calculate, define, and find on a table, on a graph with number, and on a graph with letters:
long run ATC (LR-ATC)
economies of scale
diseconomies of scale
constant returns to scale
MES (minimum efficient scale)
CHAPTERS 8, 9, 10, and 11
characteristics of all 4 product market models
examples of all four market models
Demand and MR curve
profit maximizing rule
short run equilibrium (table, graph with numbers, graph with letters)
long run equilibrium
allocative efficiency
productive efficiency
marginal cost pricing
dynamic efficiency (all 4 models)
nonprice competition
barriers to entry
patents
economies of scale
price discrimination
X-inefficiency
natural monopoly (define and graph)
regulated monopolies / rate regulation
product differentiation
mutual interdependence
concentration ratio
Herfindahl index
collusion
overt collusion
covert collusion
obstacles to collusion
price leadership
cartel
3 oligopoly pricing models
positive and negative effects of advertising
Kinked Demand Model