Assignment
Circular-flow diagram
Define/ understand the components as it relates to firms vs. households.
Production possibilities frontier
• Efficient vs. inefficient
• Opportunity cost/ tradeoff
• Unattainable points
• Shifts i.e. outward, inward
Micro vs. Macro Economics
Positive vs. normative economics
Market
Characteristics / pricing strategy of the four market structures
1. Free / competitive
2. Monopolistically Competitive
3. Oligopoly
4. Monopoly
Demand vs. Quantity Demanded/ supply vs. Quantity Supplied
• Shift factors (demand, supply)
Market equilibrium, Shortage and Surplus
• Invisible Hand theory
GDP
• Definition
• Four components
• Consumer Price Index
1. Calculating
2. Fixed basket
3. Inflation rate
4. Deflator
• Inflation/ deflation
• Real vs. Nominal
• Subjective issue i.e. Measure of economics well-being
• Historical trend
Unemployment
• Labor force
• Natural rate
• Three Categories
Money
• Functions
• Kinds
• Supply
• Liquidity
• The federal Reserve System
1. Money Multiplier
International Trade
Balance, deficit, Surplus
Aggregate Demand / Aggregate Supply
• Short Run Fluctuations i.e. recession, inflationary gap etc.
• Model i.e. AS curve, AD curve
• Keynesian vs. Classical
• Shift in AD
• Reasons for downward slope
Monetary Policy
• Expansionary vs. Contractionary
• Tools
Fiscal Policy
• Expansionary vs. Contractionary.