Untitled Flashcards Set

Important topics that you should know before you take the EXAM tomorrow!

• Definition of Economics

• Difference between Micro and Macro

• What are the Factors of Production

• Human Capital

• Opportunity cost

• Production Possibilities Frontier/Curve (graph, characterize the different points in terms of efficiency and attainability, shifts of PPF) 

• The effect of Economic Growth to the PPF 

• Comparative VS Absolute Advantage

• Demand (graph, Law of D, movements along D, shifters of D, Market D)

• Supply (graph, Law of S, movements along S, shifters of S, Market S)

• Equilibrium in D-S model (graph, characteristics of the equilibrium point) 

• Shortage (where it is located in the graph and what is the solution for a shortage) 

• Surplus (where it is located in the graph and what is the solution for the surplus) 

• Changes in the Equilibrium if D, S, or both shift