Scarcity and choice
The production possibilities curve (PPC)
Production Possibilities Curve: efficient points lie ON the curve, inefficient points inside, unattainable points outside
Calculating opportunity cost from the PPC
PPC shifts
Comparative advantage and trade
How to find comparative advantage
Demand
Demand curve: downward-sloping because of the law of demand
Movement vs. shift
Supply
Supply curve: upward-sloping because higher prices make production more profitable
Market equilibrium
Market equilibrium where supply and demand intersect
How shifts change equilibrium
Vocabulary