Unit 1: The Introduction and Foundational Concepts (8-12%)
Key concepts and graphs:
Concepts: Introduction to the language of economics, micro vs macro, positive vs. normative economics, economic decision making, pitfalls of decision making, scarcity, opportunity costs, production possibilities, absolute advantage, comparative advantage, specialization , terms of trade, demand schedule, determinants of demand, individual and market demand curves, supply schedule, determinants of supply, market equilibrium, shifts in supply and demand with effects on equilibrium price and quantity, introduction of key macroeconomic issues.
Graphs: Production possibilities curve (frontier)
Demand and supply curves showing equilibrium
Demand and supply curves showing shifts in demand/supply
Key words or terms
Economics, factors of production – inputs, capital, microeconomics, macroeconomics, positive economics, normative economics, ceteris paribus, fallacy of composition, scarcity, opportunity cost, model, production possibilities, constant costs, law of increasing opportunity cost, absolute advantage, comparative advantage, specialization, terms of trade, demand, law of demand, quantity demanded, market demand, substitutes, complements, normal goods, inferior goods, supply, law of supply, quantity supplied, market equilibrium, equilibrium price, equilibrium quantity, business cycle, recession, trough, recovery, unemployment, inflation, economic growth.
- Scarcity, choice, and opportunity cost
- Production possibilities curve
- Comparative advantage, absolute advantage, specialization and exchange
- Demand, supply and market equilibrium
- Macroeconomic issues: business cycle, unemployment, inflation, growth
Key concepts and graphs:
Concepts: Introduction to the language of economics, micro vs macro, positive vs. normative economics, economic decision making, pitfalls of decision making, scarcity, opportunity costs, production possibilities, absolute advantage, comparative advantage, specialization , terms of trade, demand schedule, determinants of demand, individual and market demand curves, supply schedule, determinants of supply, market equilibrium, shifts in supply and demand with effects on equilibrium price and quantity, introduction of key macroeconomic issues.
Graphs: Production possibilities curve (frontier)
Demand and supply curves showing equilibrium
Demand and supply curves showing shifts in demand/supply
Key words or terms
Economics, factors of production – inputs, capital, microeconomics, macroeconomics, positive economics, normative economics, ceteris paribus, fallacy of composition, scarcity, opportunity cost, model, production possibilities, constant costs, law of increasing opportunity cost, absolute advantage, comparative advantage, specialization, terms of trade, demand, law of demand, quantity demanded, market demand, substitutes, complements, normal goods, inferior goods, supply, law of supply, quantity supplied, market equilibrium, equilibrium price, equilibrium quantity, business cycle, recession, trough, recovery, unemployment, inflation, economic growth.