Microeconomics - Content Outline

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  1. Theory of Consumer:
    • Utility Maximization
      • Marginal Utility
      • Marginal Rate of Substitution (MRS)
      • Opportunity Cost
    • Demand Functions and Choice
      • Change in demand/supply v. change is quantity demand/supply
      • Income and Leisure
      • Substitution and income effects
      • Demand Elasticities
        • Elastic, inelastic, unit elastic
        • Relationship between unit elasticity and total revenue
        • Relative price
      • Other Elasticities
        • Cross Price
        • Income Elasticities
    • Consumer Surplus

       

  2. Theory of the Firm:
    • Production Functions (Cobb-Douglas, etc.)
      • Marginal Product
        • Law of Diminishing Returns
      • Returns to scale
    • Cost Function
      • Types of Costs
        • Total cost
        • Fixed Costs
        • Variable Costs
        • Marginal cost
        • Average cost
    • Short Run vs. Long Run
      • Sunk cost
      • Economies of scale
    • Profit Function
      • Profit Maximization
        • Producer Surplus
        • Time and Inter-temporal Preferences

           

  3. Market Equilibrium:
  • Supply
    • Changes in Quantity Supplied
  • Changes in Supply
    • Changes in input Price
    • Changes in Technology
    • Expectations
  • Demand
    • Changes in Quantity Demand
    • Changes in Demand
      • Demographic
      • Income
      • Expectations
  • Equilibrium

     

IV.        Distortions to the Market:

  • Price Ceilings
  • Floors
  • Quotas
  • Taxes
    • Tax Incidences
  • Subsidies
  • Deadweight Loss

 

V.            Market Structure:

  • Competitive Markets
    • Perfect competition
      • Firm's price and output decision in the short-run
      • Firm's price and output decision in the long-run
      • Short-run market supply
      • Firm entry/exit
      • Economic profit
  • Monopoly
    • Barriers to entry
    • Market concentration
      • Firm's price and output decision
      • HHI
      • Definition of a firm's market
      • Economic profit
  • Oligopoly
    • Nash equilibrium
    • Duopoly
  • Monopolistic Competition
    • Product differentiation
      • Entry and exit
      • Firm's price and output decision in the short-run
      • Firm's price and output decision in the long-run
      • Economic profit

 

        VI.   Externalities and Public Goods:

  • Public goods
    • Free Rider Problem
    • Tragedy of the Commons
    • Market/government failure
  • Externalities
    • Information (principal agents, moral hazard, etc.)
    • Property Rights
      • Coase Theorem
    • Private and Social Costs
  • Risk and Uncertainty
    • Uncertainty
    • Risk
      • Expected Value
      • Firm Beta


 

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