1. Basic Economic Concepts

    1. Microeconomics vs. Macroeconomics
    2. Production–possibility frontier
    3. Comparative advantage, absolute advantage, specialization, and trade
    4. Economic systems
    5. Property rights and the role of incentives
    6. Marginal analysis

  2. Supply and Demand

    1. Market equilibrium
    2. Determinants of supply and demand
    3. Price and quantity controls
    4. Elasticity
    5. Price, income, and cross-price elasticities of demand
    6. Price elasticity of supply
    7. Consumer surplus, producer surplus, and allocative efficiency
    8. Tax incidence and deadweight loss

  3. Theory of Consumer Choice

    1. Total utility and marginal utility
    2. Utility maximization: equalizing marginal utility per dollar
    3. Individual and market demand curves
    4. Income and substitution effects

  4. Production and Costs in Product Markets

    1. Production functions: short and long run
    2. Marginal product and diminishing returns
    3. Short-run costs
    4. Long-run costs and economies of scale
    5. Cost minimizing input combination and productive efficiency

  5. Profit

    1. Accounting versus economic profits
    2. Normal profit
    3. Profit maximization: MR=MC rule

  6. Perfect competition

    1. Profit maximization
    2. Short-run supply and shutdown decision
    3. Behavior of firms and markets in the short run and in the long run
    4. Efficiency and perfect competition

  7. Monopoly

    1. Sources of market power
    2. Profit maximization
    3. Inefficiency of monopoly
    4. Price discrimination
    5. Natural monopoly

  8. Oligopoly

    1. Interdependence, collusion, and cartels
    2. Game theory and strategic behavior
    3. Dominant strategy
    4. Nash equilibrium

  9. Monopolistic competition

    1. Product differentiation and role of advertising
    2. Profit maximization
    3. Short-run and long-run equilibrium
    4. Excess capacity and inefficiency

  10. Factor Markets

    1. Derived factor demand
    2. Marginal revenue product
    3. Hiring decisions in the markets for labor and capital
    4. Market distribution of income

  11. Externalities

    1. Marginal social benefit and marginal social cost
    2. Positive externalities
    3. Negative externalities
    4. Remedies

  12. Public goods

    1. Public versus private goods
    2. Provision of public goods

  13. Public policy to promote competition

    1. Antitrust policy
    2. Regulation of public policy

  14. Income distribution

    1. Equity
    2. Sources and measures of income inequality