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1. Introduction to Macroeconomics2h 3m

Introduction to Economics
10m

Three Key Economic Ideas
14m

Productive and Allocative Efficiency
7m

Factors of Production
5m

Positive and Normative Statements
7m

Circular Flow Diagram
5m

Graphing Review
50m

Percentage and Decimal Review
9m

Fractions Review
12m

2. Introductory Economic Models1h 9m

Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency
18m

PPF - Increasing Marginal Opportunity Costs and Allocative Efficiency
11m

PPF - Outward Shifts
8m

PPF - Comparative Advantage and Absolute Advantage
13m

PPF - Comparative Advantage and Trade
13m

PPF - Price of the Trade
3m

3. Supply and Demand3h 23m

Introduction to Supply and Demand
4m

The Basics of Demand
6m

Individual Demand and Market Demand
3m

Shifting Demand
38m

The Basics of Supply
2m

Individual Supply and Market Supply
6m

Shifting Supply
28m

Overview of Supply and Demand Shifts
7m

Supply and Demand Together: Equilibrium, Shortage, and Surplus
8m

Supply and Demand Together: One-sided Shifts
20m

Supply and Demand Together: Both Shift
34m

Supply and Demand: Quantitative Analysis
40m

4. Elasticity2h 25m

Percentage Change and Price Elasticity of Demand
18m

Elasticity and the Midpoint Method
20m

Price Elasticity of Demand on a Graph
11m

Determinants of Price Elasticity of Demand
6m

Total Revenue Test
13m

Total Revenue Along a Linear Demand Curve
14m

Income Elasticity of Demand
23m

Cross-Price Elasticity of Demand
11m

Price Elasticity of Supply
12m

Price Elasticity of Supply on a Graph
3m

Elasticity Summary
9m

5. Consumer and Producer Surplus; Price Ceilings and Price Floors3h 11m

WIllingness to Pay and Consumer Surplus
18m

Willingness to Sell and Producer Surplus
12m

Economic Surplus and Efficiency
18m

Quantitative Analysis of Consumer and Producer Surplus at Equilibrium
28m

Price Ceilings, Price Floors, and Black Markets
38m

Quantitative Analysis of Price Ceilings and Floors: Finding Points
20m

Quantitative Analysis of Price Ceilings and Floors: Finding Areas
54m

6. Introduction to Taxes1h 29m

Introducing Taxes and Tax Incidence
19m

Effects of Taxes on a Market
16m

Elasticity and Taxes
14m

Subsidies
16m

The Laffer Curve
9m

Quantitative Analysis of Taxes
13m

7. Externalities54m

Externalities: Social Benefits and Social Costs
27m

Public Solutions to Externalities
26m

8. The Types of Goods1h 3m

Four Types of Goods and Two Characteristics
22m

The Free Rider Problem and the Tragedy of the Commons
22m

Public Goods: Demand Curve and Optimal Quantity
18m

9. International Trade1h 16m

Exporting and Importing
16m

Sources of Comparative Advantage
5m

Tariffs
21m

Import Quotas and VERs
23m

Arguments Against International Trade
7m

10. Measuring National Output and Income 54m

Expenditure Approach for Measuring GDP
2m

Detailed Explanation of GDP Components
6m

Nominal GDP and Real GDP
22m

Calculating GDP Using the Income Approach
10m

Value Added Method for Measuring GDP
3m

Shortcomings of GDP
2m

Other Measures of Total Production and Total Income
5m

11. Unemployment and Inflation1h 34m

Labor Force and Unemployment
10m

Types of Unemployment
12m

Unemployment: Minimum Wage Laws and Efficiency Wages
7m

Inflation and Consumer Price Index (CPI)
16m

Using CPI to Adjust for Inflation
7m

Problems with the Consumer Price Index (CPI)
5m

Nominal Income and Real Income
12m

Nominal Interest, Real Interest, and the Fisher Equation
5m

Who is Affected by Inflation?
5m

Demand-Pull and Cost-Push Inflation
6m

Costs of Inflation: Shoe-leather Costs and Menu Costs
4m

12. Productivity and Economic Growth1h 4m

Long-Run Economic Growth
2m

Productivity and the Per-Worker Production Function
19m

Institutions that Promote Economic Growth
8m

Growth Rates and the Rule of 70
10m

New Growth Theory
6m

PPF - Growth Analysis
6m

Business Cycles and Their Characteristics
10m

13. The Financial System1h 30m

Investment, Savings, and the Financial System
4m

Savings Equal Investment
16m

Market for Loanable Funds
4m

Shifts in the Market for Loanable Funds
15m

Stocks, Bonds, and Mutual Funds
7m

Risk and Insurance
7m

Risk and Diversification
9m

Time Value of Money Calculations
17m

Calculating Bond and Stock Prices
6m

14. Income and Consumption57m

The Consumption Function
29m

The Saving Function
6m

Determinants of Consumption and Saving
6m

Average Propensity to Consume and Save
5m

Multiplier Effect of Investment Spending
9m

15. Deriving the Aggregate Expenditures Model1h 14m

Aggregate Expenditures Model and Macroeconomic Equilibrium
17m

AE Model: Graphing Macroeconomic Equilibrium
13m

AE Model: Private Closed Economy
5m

AE Model: Private Open Economy
5m

AE Model and the Multiplier
11m

AE Model: Algebraic Approach
13m

Deriving the Multiplier Algebraically
7m

16. Aggregate Demand and Aggregate Supply Analysis1h 22m

Aggregate Demand
17m

Deriving Aggregate Demand from the Aggregate Expenditure Model
12m

Shifting Aggregate Demand
4m

Long Run Aggregate Supply
9m

Short Run Aggregate Supply
7m

Shifting Short Run Aggregate Supply
8m

AD-AS Model: Equilibrium in the Short Run and Long Run
5m

AD-AS Model: Shifts in Aggregate Demand
18m

17. The Monetary System58m

The Functions of Money; The Kinds of Money
8m

Defining the Money Supply: M1 and M2
2m

Required Reserves and the Deposit Multiplier
8m

Introduction to the Federal Reserve
8m

The Federal Reserve and the Money Supply
11m

History of the US Banking System
9m

The Financial Crisis of 2007-2009 (The Great Recession)
10m

18. Monetary Policy1h 26m

Monetary vs Fiscal Policy
3m

Goals of Monetary Policy
3m

The Demand for Money
4m

The Money Supply on the Graph
11m

Monetary Policy and Aggregate Demand
17m

Expansionary and Contractionary Monetary Policy
15m

Taylor Rule
11m

Quantity Theory of Money
9m

Federal Reserve Policies during the 2007-2009 Recession
8m

19. Fiscal Policy52m

Introduction to Fiscal Policy
9m

Expansionary and Contractionary Fiscal Policy
9m

Government Purchases and the Multiplier Effect
8m

Taxes, the Multiplier Effect, and Automatic Stabilizers
9m

Long Run Effects of Fiscal Policy
6m

Criticisms of Fiscal Policy
10m

20. Tradeoffs Between Inflation and Unemployment1h 2m

Short Run Phillips Curve
9m

Long Run Phillips Curve
6m

Phillips Curve and Expected Inflation
23m

Phillips Curve and Supply Shocks
5m

Sacrifice Ratio
8m

Disinflation and Deflation
9m

21. Open-Economy Macroeconomics1h 44m

Balance of Payments: Introduction
5m

Balance of Payments: Current Account
8m

Balance of Payments: Financial Account and Capital Account
7m

Net Exports Equal Net Foreign Investment
7m

Balance of Trade; Trade Deficit and Trade Surplus
6m

Exchange Rates: Introduction
14m

Exchange Rates: Nominal and Real
13m

Exchange Rates: Equilibrium
8m

Exchange Rates: Shifts in Supply and Demand
11m

Exchange Rates and Net Exports
6m

Exchange Rates: Purchasing Power Parity
3m

The Gold Standard
4m

The Bretton Woods System
6m

22. Macroeconomic Schools of Thought31m

Classical Model and Keynesian Model
9m

Monetarist Model
4m

New Classical Model
4m

Real Business Cycle Model
3m

Austrian Model
3m

Communism and Karl Marx
5m

23. Dynamic AD/AS Model32m

Dynamic AD-AS Model: Introduction
4m

Dynamic AD-AS Model: Inflation and Recession
10m

Dynamic AD-AS Model: Fiscal Policy
9m

Dynamic AD-AS Model: Monetary Policy
7m

2. Introductory Economic Models

PPF - Comparative Advantage and Absolute Advantage

Macroeconomics

2. Introductory Economic Models

PPF - Comparative Advantage and Absolute Advantage

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Multiple Choice

- How do you calculate opportunity cost using a PPF?

By using the slope of the PPF: the amount of the other good sacrificed per additional unit of the chosen good (ΔOther/ΔChosen).

By calculating the area under the PPF between two production points.

By subtracting the two maximum outputs on each axis (difference between intercepts).

By using the inverse slope: the amount of the chosen good sacrificed per additional unit of the other good (ΔChosen/ΔOther).

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