Basic Economic Concepts

Every economic decision is a trade-off, and this unit builds the logic for analyzing those trade-offs precisely. Scarcity forces choice, opportunity cost measures what you give up, and the production possibilities curve makes both of those ideas visible. Comparative advantage explains why individuals, firms, and countries specialize and trade even when one party is better at everything. Supply and demand give you the mechanism markets use to allocate scarce resources, and equilibrium is where that mechanism settles. These are the terms, graphs, and reasoning moves every later unit assumes you already own.

5–10% of exam