Chapter 1

-understand what scarcity means and its implications

-understand opportunity cost and its effect on behavior

-understand how decisions are made on the margin

-why do economists invoke logical device of ceteris paribus

--be able to distinguish between positive and notmative statements

Chapter 3

Micro concepts

-understand what we mean by demand and all the various factors that affect demand

-understand the difference between change in quantity demand vs change in demand

-understand what we mean by supply and all the various factors that affect supply

-understand the difference between change in quantity supplied vs change in supply

-understand market equilibrium and the consequences of prices being either above or below the
equilibrium price

-be able to predict changes in market outcome (equilibrium price and quantity) using simple demand
and supply analytics for scenarios described (we did several examples in class)

Chapter 4

-define unemployment

-what is the working age population, people who are not in the labor force, people who are in the labor
force

-be able to compute unemployment rate, employment rate, and labor force participation rate using data
presented.

-be able to distinguish between four types of unemployment (frictional, structural, natural, cyclical)

-what is the CPI, how it is calculated, be able to compute inflation rates, and articulate the problems
associated with CPI

-be able to convert and compare dollar figures over time

Chapter 7
-be able to articulate a precise definition of GDP and all its components

-be able to articulate how a scenario described to you may affect GDP and each of its components (if at
all)

-be able to calculate real GDP either using base year prices or given information on the GDP deflator

-be able to articulate what GDP might not be a perfect measure of well -being

Chapter 8

-what is aggregate demand and why does it slope downwards . what are the various factors what can
affect AD

-what is aggregate supply and why does it slope upwards. what are the various factors that affect AS

-be able to conduct analysis using the AD-AS framework. In particular, be able to articulate the effect on
overall price level and real GDP for the scenario described. We have done examples in class.