Chapter 1.

1. Economics, scarcity, resources, land, labor, capital.

2. Three basic economic questions

3. Opportunity cost

4. Macroeconomics vs microeconomics

5. Economist’s method of study

6. Positive economics and normative economics

Chapter 2.

1. Adam Smith’s Invisible Hand Theorem

2. Market system

3. Production Possibilities Frontier (efficient, inefficient, unattainable, shifts of ppf)

4. Consumer goods vs capital goods

5. Law of increasing opportunity cost

6. Gains from trade (comparative advantage, specialization)

Chapter 3

1. Competitive market vs monopoly

2. Demand, quantity demanded, law of demand, other factors that affect the demand.

3. Supply, quantity supplied, law of supply, other factors that affect the supply.

4. Equilibrium price and equilibrium quantity. Surplus and shortage.

5. Changes in market equilibrium.

Chapter 4.

1. The circular-flow model

2. Lorenz curve

3. Proprietorships, advantage and disadvantage of proprietorships.

4. Partnerships, advantage and disadvantage of partnerships.

5. Corporations, advantage and disadvantage of corporations.

6. Government: spending and taxation.

7. Regressive tax, proportional tax, progressive tax.

8. Benefit-receive principle and Ability-to-pay principle.

9. International trade: exports and imports.