Exam Topics
1 Basic Economic Concepts (12-15%)
1.1 Scarcity
1.2 Resource Allocation and Economic Systems
1.3 Production Possibilities Curve
1.4 Comparative Advantage and Trade
1.5 Cost-Benefit Analysis
1.6 Marginal Analysis and Consumer Choice
2 Supply and Demand (20–25%)
2.1 Demand
2.2 Supply
2.3 Price Elasticity of Demand
2.4 Price Elasticity of Supply
2.5 Other Elasticities
2.6 Market Equilibrium and Consumer and Producer Surplus
2.7 Market Disequilibrium and Changes in Equilibrium
2.8 The Effects of Government Intervention in Markets
2.9 International Trade and Public Policy
3 Production, Cost, and the Perfect Competition Model (22-25%)
3.1 The Production Function
3.2 Short-Run Production Costs
3.3 Long-Run Production Costs
3.4 Types of Profit
3.5 Profit Maximization
3.6 Firms’ Short-Run Decisions to Produce and Long-Run Decisions to Enter or Exit a Market
3.7 Perfect Competition
4 Imperfect Competition (15-22%)
4.1 Introduction to Imperfectly Competitive Markets
4.2 Monopoly
4.3 Price Discrimination
4.4 Monopolistic Competition
4.5 Oligopoly and Game Theory
5 Factor Markets (10-13%)
5.1 Introduction to Factor Markets
5.2 Changes in Factor Demand and Factor Supply
5.3 Profit-Maximizing Behavior in Perfectly Competitive Factor Markets
5.4 Monopsonistic Markets
6 Market Failure and the Role of Government (8-13%)
6.1 Socially Efficient and Inefficient Market Outcomes
6.2 Externalities
6.3 Public and Private Goods
6.4 The Effects of Government Intervention in Different Market Structures
6.5 Inequality
Exam Format
Section I: Multiple choice, 60 questions, 1 hour 10 minutes, 66% weight
Section II: Free response, 3 questions, 1 hour, 34% weight