Must Know Graphs for Micro
– Production Possibilities Curve
– Market Equilibrium
– Price Floor and Price Ceiling
– Tax with Perfectly Elastic/Inelastic Demand
– Demand Curve on Top of Total Revenue Curve
– Positive & Negative Externalities
– Typical Cost Curves
– Perfectly Competitive Market with Firm in Long-Run Equilibrium (side-by-side)
– Perfectly Competitive with Short-Run Profit (side-by-side)
– Perfectly Competitive with Short-Run Loss (side-by-side)
– Monopoly with Profit
– Monopoly Competition in Long-Run Equilibrium
– Labor Market and Typical Firm (side-by-side)
– Monopsony
– Production Possibilities Curve
– Market Equilibrium
– Price Floor and Price Ceiling
– Tax with Perfectly Elastic/Inelastic Demand
– Demand Curve on Top of Total Revenue Curve
– Positive & Negative Externalities
– Typical Cost Curves
– Perfectly Competitive Market with Firm in Long-Run Equilibrium (side-by-side)
– Perfectly Competitive with Short-Run Profit (side-by-side)
– Perfectly Competitive with Short-Run Loss (side-by-side)
– Monopoly with Profit
– Monopoly Competition in Long-Run Equilibrium
– Labor Market and Typical Firm (side-by-side)
– Monopsony
Content AreaSpecific Concepts CoveredPercentage of Multiple-Choice Section of Exam
Basic Economic Concepts– Scarcity, choice, and opportunity cost Production possibilities curve Comparative advantage, absolute advantage, specialization, and trade Economic systems Property rights and the role of incentives Marginal analysis
8-14%
Supply and Demand– Market equilibrium Determinants of supply and demand Price and quantity controls Elasticity– Consumer surplus, producer surplus, and allocative efficiency
– Tax incidence and dead-weight loss
15-20%
Theory of Consumer Choice– Total utility and marginal utility– Utility maximization: equalizing marginal utility per dollar
– Individual and market demand curves
– Income and substitution effects
5-10%
Production and Costs– Production functions: short and long run
– Marginal product and diminishing returns
– Short-run costs
– Long-run costs and economies of scale
– Cost minimizing input combination and productive efficiency
10-15%
Firm Behavior and Market Structure– Profit
– Perfect competition
– Monopoly
– Oligopoly
– Monopolistic competition
25-35%
Factor Markets– Derived factor demand
– Marginal revenue product
– Hiring decisions in the markets for labor and capital
– Market distribution of income
10-18%
Market Failure and the Role of Government– Externalities
– Public goods
– Public policy to promote competition
– Income distribution
12-18%
Basic Economic Concepts– Scarcity, choice, and opportunity cost Production possibilities curve Comparative advantage, absolute advantage, specialization, and trade Economic systems Property rights and the role of incentives Marginal analysis
8-14%
Supply and Demand– Market equilibrium Determinants of supply and demand Price and quantity controls Elasticity– Consumer surplus, producer surplus, and allocative efficiency
– Tax incidence and dead-weight loss
15-20%
Theory of Consumer Choice– Total utility and marginal utility– Utility maximization: equalizing marginal utility per dollar
– Individual and market demand curves
– Income and substitution effects
5-10%
Production and Costs– Production functions: short and long run
– Marginal product and diminishing returns
– Short-run costs
– Long-run costs and economies of scale
– Cost minimizing input combination and productive efficiency
10-15%
Firm Behavior and Market Structure– Profit
– Perfect competition
– Monopoly
– Oligopoly
– Monopolistic competition
25-35%
Factor Markets– Derived factor demand
– Marginal revenue product
– Hiring decisions in the markets for labor and capital
– Market distribution of income
10-18%
Market Failure and the Role of Government– Externalities
– Public goods
– Public policy to promote competition
– Income distribution
12-18%