Note: The test will consist of 30 True/False and/or Multiple Choice questions (worth 60 points), and a graphical analysis section (worth 40 points).

The following are a list of topics to study for the True/False and/or Multiple Choice questions. (worth 60 points)

Opportunity cost.
Examples of economic resources.
Macro vs. Micro economics.
Positive vs. Normative economics.
Recessions vs. Expansions.
Inflation vs. deflation.
Price stability.
Absolute vs. comparative advantage.
A competitive market.
Law of demand.
Movement along the demand curve.
Factors that cause the demand curve to shift.
Normal vs. inferior goods.
Substitute vs. Complement goods.
An increase vs. a decrease in the demand curve.
An increase vs. a decrease in the supply curve.
Market equilibrium.
Law of supply.
Factors that cause the supply curve to shift.
Know what happens to equilibrium Price and Quantity when there is an increase in demand.
Know what happens to equilibrium Price and Quantity when there is a decrease in supply.
Know what happens to equilibrium Price and Quantity when there are simultaneous shifts in supply and demand.
Know what an input is.
Price ceiling vs. price floor.
The market-clearing price.
A shortage vs. a surplus of goods.
A price control.

The following are a list of topics to study for the graphical analysis section (worth 40 points).

Illustrating an increase or decrease in price. (Refer to the Law of Demand and the Law of Supply to know how quantity will respond in either case)
Illustrating an increase or decrease in supply when demand remains the same.
Illustrating either an increase or decrease in supply and an increase or decrease in demand.
Illustrating a price ceiling or a price floor given data.