Q1. Explain the two big questions of economics.

Q2. Explain the key ideas that define the economic way of thinking.

Q3. Define preferences and marginal benefit and describe an efficient allocation of resources.

Q4. Explain how specialization and trade make resource use more efficient.

Q5. Explain the influences on demand and supply.

Q6. Explain how demand and supply determine prices and quantities bought and sold (or equilibrium quantity).

Q7. Define, calculate, and explain the factors that influence the price elasticity of demand.

Q8. Define, calculate, and explain the factors that influence the income elasticity of demand and the cross elasticity of demand.

Q9. Explain the conditions under which markets are efficient and inefficient.

Q10. Explain the main ideas about fairness and evaluate claims that markets result in unfair outcomes.

Q11. Describe how rent ceilings create housing shortages

Q12. Explain the effects of production quotas and subsidies.

Q13. Identify the gains from international trade and its winners and losers.

Q14. Explain the effects of international trade barriers.

Q15. Explain the marginal utility theory of consumer choice.

Q16. Use marginal utility theory to predict the effects of changes in prices and incomes and to explain the paradox of value.

Q17. Use indifference curves to map preferences and explain the principle of diminishing marginal rate of substitution.

Q18. Predict the effects of changes in prices and income on consumption choices.

Q19. Distinguish between technological efficiency and economic efficiency.

Q20. Explain why markets coordinate some economic activities and why firms coordinate others.

Q21. Explain and illustrate a firm's short-run product curves.

Q22. Explain and derive a firm's short-run cost curves.

Q23. Explain how price and output are determined in perfect competition.

Q24. Explain why perfect competition is efficient.

Q25. Explain how a single-price monopoly determines its output and price.

Q26. Compare the performance and efficiency of single-price monopoly and competition.

Q27. Explain how a firm in monopolistic competition determines its price and output in the short run and the long run.

Q28. Explain why advertising costs are high and why firms in monopolistic competition use brand names.

Q29. Use game theory to explain how price and output are determined in oligopoly.

Q30. Describe the antitrust laws that regulate oligopoly.

Q31. Explain how wage rates and employment are determined.

Q32. Explain how capital and land rental rates and natural resource prices are determined.