econ unit 1 study guide

  1. Comparative Advantage, output question

  2. What is physical capital? What are examples of physical capital?

  3. What is opportunity cost?

  4. Understanding opportunity cost through examples

  5. Production Possibilities Curve. What does a bowed out curve mean?

  6. Understanding points on a production possibilities curve

  7. Understanding what shifts the production possibilities curve

  8. Understanding the long term benefits of capital goods over consumer goods on a production possibility curve

  9. Understand the law of supply. What factors increase supply?

  10. Know the difference between substitute goods and complementary goods

  11. understand the law of supply. Understand the relationship between price and supply

  12. What is the difference between law of supply and law of demand

  13. Factors that affect demand

  14. Know the difference between different types of goods

  15. Know the difference between increasing of price and complementary goods and substitute goods

  16. Factors that shift the supply curve to the left or to the right

  17. What is a inferior good, consumer goods, normal goods, complementary goods and substitute goods

  18. Understand shortage and surplus with reference to equilibrium

  19. Understand what a price floor is and what a price ceiling is and understand the differences

  20. When a supply and demand curve shift understand what happens to price and quantity

  21. What factors shift the curve to the right and to the left

  22. Understand what happens when both supply and demand curve shift at the same time

  23. What are the affects of a price floor and price ceiling

  24. Understand how an increase or decrease in demand and supply affect market equilibrium

  25. Comparative advantage input question

  26. Comparative advantage input question

  27. Comparative advantage question