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Exam 1 Review Guide: Foundations of Macroeconomics (Chapters 1-3)

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Three Key Economic Ideas

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    Marginal Analysis
    09:36
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    People Are Rational
    02:02
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    Economic Incentives
    01:40

Positive and Normative Statements

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    Identifying Statements
    02:48
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    Positive Statements vs. Normative Statements
    04:35

Circular Flow Diagram

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    Households and Firms
    01:32
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    The Circular Flow Diagram
    04:20

Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency

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    Understanding the PPF
    06:23
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    PPF - Attainable and Efficient
    04:48

PPF - Comparative Advantage and Absolute Advantage

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    Opportunity Costs and Comparative Advantage
    04:36
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    Different PPFs and Absolute Advantage
    02:03

PPF - Comparative Advantage and Trade

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    Comparative Advantage and Specialization in Trade
    05:30

Introduction to Supply and Demand

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    Perfect Competition
    03:23

The Basics of Demand

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    The Basics of Demand
    06:02

Shifting Demand

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    Substitute and Complementary Goods
    01:27
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    Shifting Demand
    03:59
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    Consumer Preferences
    01:44

The Basics of Supply

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    The Basics of Supply
    02:43

Shifting Supply

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    Shifting Supply
    01:56
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    Nature
    01:00
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    Technology
    01:39

Supply and Demand Together: Equilibrium, Shortage, and Surplus

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    Equilibrium
    02:41
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    Law of Supply and Demand
    02:43
  • Surplus and Shortage
    02:56

Supply and Demand Together: One-sided Shifts

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    Demand Shifts
    04:26
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    Supply Shifts
    03:36

Supply and Demand Together: Both Shift

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    Results of Both Shifting
    06:34
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    Both Shift - Warning!
    07:32