Practice
Pick a skill and work until it is automatic. Every problem has new numbers and a full worked solution, and the market problems show their graph once you answer.
Your progress
Unit 1: Basic Economic Concepts
- Topic 1.4Comparative advantage and terms of tradeOpportunity costs from a production table, who has the comparative advantage, and which terms of trade help both sides.
- Topic 1.6Marginal utility per dollarChoose the combination of two goods that maximizes total utility on a budget, by comparing marginal utility per dollar.
Unit 2: Supply and Demand
- Topic 2.3, 2.4, 2.5Elasticity by the midpoint methodPrice elasticity of demand and supply, the total revenue test, and income and cross-price elasticity.
- Topic 2.6, 2.7Market equilibrium and surplusEquilibrium price and quantity from linear supply and demand, consumer and producer surplus, and the shortage or surplus at another price.
- Topic 2.8Per-unit taxes and deadweight lossWhat a per-unit tax does to the price buyers pay, the price sellers keep, the quantity, tax revenue and deadweight loss.
- Topic 2.8Price ceilings and price floorsThe shortage or surplus a binding price control creates, its deadweight loss, and when a control does nothing.
Unit 3: Production, Cost, and the Perfect Competition Model
- Topic 3.2Short-run costs from a tableFixed, variable, marginal and average costs read and computed from a firm’s total cost schedule.
- Topic 3.4Accounting and economic profitAccounting profit subtracts explicit costs; economic profit also subtracts the implicit costs of what the owner gave up.
- Topic 3.5, 3.6, 3.7Profit maximization in perfect competitionWhere a price-taking firm sets marginal revenue equal to marginal cost, its profit or loss, and when it shuts down.