Microeconomics Learning Outcomes
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1 Economic Thinking
Explain the basic premises and tools of economic thinking
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1.1Explain what economics is and explain why it is important
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1.1.1Describe scarcity and explain its economic impact
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1.1.2Describe factors of production
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1.1.3Describe opportunity cost and its importance in decision-making
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1.1.4Explain how specialization and the division of labor lead to trade and markets
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1.1.5Distinguish between macroeconomics and microeconomics
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1.2
Use mathematics in common economic applications
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1.2.1Explain the characteristics and purpose of economic models
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1.2.2Explain how equations and functions are used to describe relationships (such as cause and effect)
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1.2.3Use proper order of operations while solving simple equations with variables
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1.3
Use graphs in common economic applications
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1.3.1Explain how a to construct a simple graph that shows the relationship between two variables
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1.3.2Differentiate between a positive relationship and a negative relationship
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1.3.3Interpret economic information on a graph
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2 Choice in a World of ScarcityUse economic thinking to explain choice in a world of scarcity
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2.1
Explain the cost of choices and trade-offs
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2.1.1Explain how budget constraints impact choices
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2.1.2Calculate the opportunity costs of an action
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2.2Illustrate society's trade-offs by using a production possibilities frontier (or curve)
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2.2.1Explain the production possibilities frontier
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2.2.2Use the production possibilities frontier to identify productive and allocative efficiency
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2.3
Explain the assumption of rationality by individuals and firms
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2.3.1Define rationality in an economic context
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2.3.2Provide examples of rational decision-making
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2.3.3Explain the importance of marginal analysis in economics
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2.3.4Give examples of marginal cost and marginal benefit
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2.3.5Distinguish between positive and normative statements
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3 Supply and Demand
Analyze how buyers and sellers interact in a free and competitive market to determine prices and quantities of goods
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3.1
Describe and differentiate between major economic systems
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3.1.1Describe characteristics of market economies, including free and competitive markets
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3.1.2Describe characteristics of a planned, or command, economy
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3.2
Explain the determinants of demand
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3.2.1Explain demand and the law of demand
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3.2.2Identify and explain a demand curve
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3.2.3Create and interpret a demand curve using a data set
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3.2.4Describe which factors cause a shift in the demand curve
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3.2.5Define and give examples of substitutes and complements
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3.2.6Draw a demand curve and graphically represent changes in demand
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3.3
Explain the determinants of supply
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3.3.1Explain the law of supply
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3.3.2Identify and explain a supply curve
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3.3.3Create and interpret a supply curve using a data set
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3.3.4Describe which factors cause a shift in the supply curve and show them on a graph
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3.4Explain and graphically illustrate market equilibrium, surplus and shortage
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3.4.1Define equilibrium price and quantity and identify them in a market
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3.4.2Define surpluses and shortages and explain how they cause the price to move towards equilibrium
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3.4.3Create a graph that illustrates equilibrium price and quantity
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3.4.4Predict how economic conditions cause a change in supply, demand, and equilibrium (using the four-step process)
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3.4.5Explain what happens to supply, demand, and equilibrium when there is a change in both supply and demand
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3.4.6Describe the differences between changes in demand and changes in the quantity demanded
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3.4.7Describe the differences between changes in supply and changes in quantity supplied
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4 Applications of Supply and Demand
Evaluate applications of supply and demand, including price floors, price ceilings, and surplus
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4.1Analyze the economic effect of government setting price ceilings and floors
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4.1.1Analyze the consequences of the government setting a binding price ceiling, including the economic impact on equilibrium price and quantity
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4.1.2Compute and demonstrate the market shortage resulting from a price ceiling
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4.1.3Analyze the consequences of the government setting a binding price floor, including the economic impact on equilibrium price and quantity
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4.1.4Compute and demonstrate the market surplus resulting from a price floor
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4.1.5Analyze the economic effect of government setting price ceilings and floors
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4.2Define, calculate, and illustrate consumer, producer, and total surplus
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4.2.1Explain why voluntary trade benefits both parties and why it leads to allocative efficiency
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4.2.2Explain, calculate, and illustrate consumer surplus
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4.2.3Explain, calculate, and illustrate producer surplus
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4.2.4Explain, calculate, and illustrate total surplus
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4.2.5Explain how price floors and price ceilings can be inefficient
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4.3Examine ways that supply and demand apply to labor and financial markets
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4.3.1Describe how the theories of supply & demand can be applied labor markets and financial markets 
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4.3.2Use the four-step process to predict how economic conditions cause a change in supply, demand, and equilibrium
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5 Elasticity
Describe and calculate elasticity and explain its consequences
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5.1Explain the concept of elasticity
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5.1.1Describe and give examples of elasticity
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5.1.2Analyze why the demand for some goods is either elastic or inelastic
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5.2Explain the price elasticity of demand and price elasticity of supply, and compute both using the midpoint method
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5.2.1Mathematically differentiate between elastic, inelastic, and unitary elasticities of demand and supply
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5.2.2Calculate percentage changes, or growth rates
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5.2.3
Differentiate between the midpoint elasticity approach and the point elasticity approach in calculating elasticity
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5.2.4Calculate price elasticity using the midpoint method
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5.2.5Differentiate between slope and elasticity
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5.2.6Explain and compare the graphs for the following types of elasticities: elastic, inelastic, unitary, infinite, and zero
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5.2.7Calculate price elasticity of supply
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5.3Explain and calculate other elasticities using common economic variables
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5.3.1Calculate the income elasticity of demand
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5.3.2Explain and calculate cross-price elasticity of demand
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5.3.3Describe elasticity in labor and financial capital markets
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5.4Explain the relationship between a firm's price elasticity of demand and total revenue
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5.4.1Explain how differences in elasticity affect total revenue
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5.4.2Evaluate how elasticity can cause shifts in demand and supply
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5.4.3Predict how the long-run and short-run impacts of elasticity affect equilibrium
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5.4.4Explain how the price elasticities of demand and supply determine the incidence of a tax on buyers and sellers
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6 Utility
Explain how consumer behavior shapes the demand curve with respect to utility and loss
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6.1
Describe the concept of utility and explain how consumers spend in order to maximize utility
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6.1.1Explain utility and its connection to consumer behavior
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6.1.2Calculate the total utility of a collection of goods and services
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6.1.3Differentiate between total and marginal utility
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6.1.4Contrast and compute marginal utility and total utility
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6.1.5Explain why maximizing utility requires that the last unit of each item purchased must have the same marginal utility per dollar
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6.1.6Calculate the utility-maximizing choice
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6.2
Explain how consumer utility changes when income or prices change
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6.2.1Demonstrate how changes in income and price affect consumer choices
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6.2.2Contrast the substitution effect and the income effect
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