1. Economics

2. Macroeconomics

3. Scarcity

4. Opportunity Cost

5. Self-Interest

6. Rational Choice

7. Marginal Benefit

8. Marginal Cost

9. Incentives

10. Division of Labor and Knowledge

11. Absolute advantage

12. Comparative advantage

13. Law of Demand

14. Law of Supply

15. Surplus

16. Shortage

17. Market Equilibrium

18. GDP

19. Standard of Living

20. Nominal GDP

21. Real GDP

22. Recession

23. Business Cycle

24. Economic Growth

25. Physical capital

26. Human capital

27. Technological knowledge

28. Institutions

29. Economies of scale

30. Catch Up Growth

31. Cutting Edge Growth

32. Productivity

33. Marginal Product of capital

34. Law of Diminishing Returns

35. Investment

36. Depreciation

37. Steady State

38. Conditional Convergence

39. Savings

40. Investment

41. Supply of loanable funds

42. Consumption Smoothing

43. Lifecycle theory of savings

44. Real Interest Rate

45. Nominal interest rate

46. Inflation premium

47. Demand for loanable funds

48. Loanable Funds Market

49. Financial Intermediaries

50. Bank Failure / Bank panic

51. Free Trade

52. Protectionism

53. Tariff / Quota

54. Trade deficit

55. Balance of payments

56. Exchange Rate

57. Appreciation / Depreciation

58. Purchasing Power Parity Theorem

59. Law of one Price

Key Graphs to Know:

1. PPF model

2. Supply and Demand Graph

3. Solow Growth model

4. Market for Loanable Funds

Key Math to Know:

5. Calculate opportunity cost

6. Calculate GDP using national spending approach

7. Real GDP and GDP per capita

8. GDP growth rate

9. Rule of 70

10. Marginal Product of Capital

11. Labor Productivity

Key Names to Know:

12. Adam Smith

13. Karl Marx

14. Robert Solow

15. Paul Romer

. Lesson:

introduction to economics and macroeconomics

1. Define economics *

2. Differentiate between macroeconomics and microeconomics* Lesson: economic way of thinking (chapter 1)

1. Identify the elements of the economic way of thinking.

* 2. Define opportunity cost

3. Identify the opportunity cost of an decision

4. State the maximizing assumption using in economics for households and firms

5. Identify the marginal benefit and marginal cost of an decision

6. Explain the principles of diminishing marginal benefit and increasing marginal cost.

7. Discuss what creates an incentive according to the economic way of thinking.

lesson: power of trade to improve our lives (chapter 2)

1. Explain the 3 basic economic questions

2. List 3 benefits of trade

3. Explain how trade can move resources from less valued used to more valued used

4. Identify the ways specialization increases productivity

5. Define the terms absolute advantage and comparative advantage

6. Identify who has the comparative advantage

7. Find gains from trade based on comparative advantage

lesson: market forces - supply and demand model (chapter 3 and 4)

1. Give the law of demand and the law of supply*

2. Identify the determinants of demand and of supply

3. Explain how market price tends to move towards equilibrium

4. State the principles of market forces

5. Use the supply and demand model to analyze market outcomes lesson: understanding gross domestic product (chapter 6)

1. Define Gross Domestic Product (GDP) as a measure of macroeconomic activity.

2. Determine if a given transaction would be added in GDP or not.

3. List the spending components of GDP and give examples of each.

Lesson: Using GDP to measure economic performance (chapter 6)

1. Contrast nominal GDP and real GDP

2. Calculate Real GDP

3. Calculate GDP growth rates

4. Identify the correct uses for the various forms of GDP

5. Discuss how well changes in GDP reflect changes in people's wellbeing

lesson: economic growth and economic institutions? (chapter 7)

1. Describe how real GDP per capita has changed in the world, over that the course of human history

2. Describe how the GDP per capita compares across nations today.

3. Use the rule of 70 to calculate GDP over time and to demonstrate the compounding effects of economic growth.

4. Give examples of growth miracles and growth disasters.

5. List the determinants of economic growth including the factors of production and compatible institutions.*

6. Define Human Capital and identify the sources of human capital

7. Distinguish between the types of economic systems: command and market

8. Summarize Karl Marx's and Adam Smith's views of the different economic systems

9. Define institution

10. Explain the difference between good institutions and bad institutions as the relate to economic growth

11. Give examples of pro-growth polices a government could support.

12. Analyze institutions and policies across nations to determine why a nation has a high or low GDP per capita.

lesson: Solow Growth Model - differences in economic growth rates (chapter 8)

1. Explain the law of diminishing returns

2. Distinguish between "catch-up growth" and cutting-edge" growth and state how their growth rates differ.

3. Find a nations steady state level of capital and output, using the Solow growth model

4. Explain the conditions and prediction of the conditional convergence theory

5. Explain how investment rates (and savings rates) affect economic growth potential

lesson: Solow Growth Model - sustainability of economic growth (chapter 8)

1. Explain why capital accumulation cannot explain continuous growth over the very long run

2. Explain why ideas do not have to experience diminishing returns

3. Explain the prediction of New Growth Theory

4. Discuss why economists say economic growth is sustainable, and identify what they say is needed to make it sustainable

lesson : savings, investment, and the pot of loanable funds (chapter 9)

1. Explain the connection between savings and investment.*

2. Identify the factors of savings (supply shifters) and the factors of borrowing (demand shifters)

3. Find the equilibrium real interest rate and equilibrium quantity of savings / borrowing using a loanable funds graph

4. Show the effect of a change in the factors of savings and/or borrowing on the equilibrium real interest rate and quantity savings / investment

lesson: financial system - when efficient and inefficient (chapter 9)

1. Identify forms of financial intermediaries

2. List the functions of financial intermediaries related to reducing risk and transaction costs of financial exchanges.

3. State the relationship between bond prices and interest rates

4. Identify financial intermediary failures

Chapter 19: International Trade

1. Differentiate between free trade and protectionism

2. Identify ways in which the government could engage in protectionism

3. List the winners and losers of free trade

4. List the winners and losers of protectionism

5. Summarize the economic view on international trade and globalization

6. Give some common arguments against free international trade/globalization and then give the economic counterargument.

Chapter 20: International Finance

1. Define balance of payments and give the mathematical expression for the balance of payments

2. Explain the economic view on trade deficits and why they are not the problem people make them out to be.

3. Use supply and demand to explain changes in currency exchange rates

4. Determine if a currency is appreciating or depreciating relative to another currency

5. Explain the purchasing power parity theorem as it relates to exchange rates

6. Describe the roles of the International Monetary Fund (IMF) and the World Bank and some of the criticism of them