1. Define microeconomics and macroeconomics
2. Identify the various resource categories used in economics
3. Define scarcity and explain its importance in economics
4. Identify the opportunity cost of a choice
5. Illustrate the role of incentives
6. Explain rational decision making
7. Define marginal benefit and marginal cost
8. Describe the relationship between marginal benefits and costs in equilibrium
9. Explain how resources are combined to produce output
10. Construct and interpret a production possibilities frontier
11. Calculate and explain opportunity cost using a production possibilities frontier
12. Identify Absolute Advantage
13. Identify comparative advantage using opportunity costs
14. Identify patterns of specialization using comparative advantage
15. Identify the terms of trade using comparative advantage
16. Illustrate the gains from trade in a production possibilities frontier model
17. Illustrate how increasing opportunity costs affect the production possibilities frontier
18. Model the flow of resources, output, and monetary transactions in a simple economy