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1. What is opportunity cost and what does it mean?
2. What are the eight guideposts to economic thinking and how to incentives fit into thinking like an economist?
3. What role does scarcity play in economic thought? Does Bill Gates face the problem of scarcity?
4. What is comparative advantage?
5. What is the definition of economic efficiency and how does it relate to marginal costs and benefits?
6. What role do property rights play in economy?
7. How does investment improve our production possibilities?
8. What happens to the demand for a complementary good if the price of its complement goes up?
9. What is the law of demand?
10. What is the invisible hand and how does it work?
11. How does a price ceiling impact a market?
12. How does a price floor impact a market?
13. Who bears the burden of a tax and how does elasticity relate to this question?
14. What is a positive externality and how does the market respond when there are positive externalities? Does the government need to subsidize these porducts with positive externalities?
15. What is a negative externality and what should the government do to deal with that sort of problem?
16. How does the free rider effect impact the availability of a public good?
17. How does the law of marginal diminishing utility impact the utility you receive from each additional unit of consumption of a given item?
18. How do you calculate elasticity?
19. What role does profit play in motivating entrepreneurs?
20. What should a price taker do if marginal revenue exceeds marginal costs?
21. Are price takers more efficient than price searchers?
22. What role do barriers to entry have with regards to economic profits?
23. What is the profit maximizing and loss minimizing solution for businesses not engaging in price discrimination?
24.What is the profit maximizing rule for a monopolist?
25. How does collusion impact the performance of an oligopolistically structured enterprise?
26. Why do economists oppose tariffs?
27. What factor creates a natural monopoly?
28. How would you expect an attractive and prestigious job to be compensated and what would an economist tell you?
29. Does everybody win with free trade?
30. What does a competitive capital market do to the value of resources?
31. What is the opportunity cost of attending an economics class?
32. What is the definition of economic efficiency?
33. How does price relate to marginal value and total value? What is the paradox of diamonds and water?
34. What is the law of diminishing returns and how does it relate to costs?
35. What are the characteristics of a monopolistically competitive firm?
36.What are the characteristics of a monopoly?
37. What are the characteristics of an oligopoly?
38. Work with a supply and demand chart to explain a supply shock.
39. Work with a supply and demand chart to explain a preference change.
40. If you produce pollution, how would economist evaluate your price and output?
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