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Microeconomics Exam 1 Study Guidance – Scarcity, Opportunity Cost, Comparative Advantage, Supply & Demand

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Scarcity and Choice

Positive and Normative Analysis

The Production Function and Diminishing Returns

Production Possibilities Frontier (PPF) - Introduction and Productive Efficiency

PPF - Increasing Marginal Opportunity Costs and Allocative Efficiency

Sources of Comparative Advantage

The Demand Curve

Shifts in the Demand Curve

Movement Along a Demand Curve

The Supply Curve

Shifts in the Supply Curve

Movement Along a Supply Curve

Consumer Surplus and Willingness to Pay

Producer Surplus and Willingness to Sell