Ch. 2 - Introductory Economic ModelsWorksheetSee all chapters
All Chapters
Ch. 1 - Introduction to Macroeconomics
Ch. 2 - Introductory Economic Models
Ch. 3 - Supply and Demand
Ch. 4 - Elasticity
Ch. 5 - Consumer and Producer Surplus; Price Ceilings and Price Floors
Ch. 6 - Introduction to Taxes
Ch. 7 - Externalities
Ch. 8 - The Types of Goods
Ch. 9 - International Trade
Ch. 10 - Introducing Economic Concepts
Ch. 11 - Gross Domestic Product (GDP) and Consumer Price Index (CPI)
Ch. 12 - Unemployment and Inflation
Ch. 13 - Productivity and Economic Growth
Ch. 14 - The Financial System
Ch. 15 - Income and Consumption
Ch. 16 - Deriving the Aggregate Expenditures Model
Ch. 17 - Aggregate Demand and Aggregate Supply Analysis
Ch. 18 - The Monetary System
Ch. 19 - Monetary Policy
Ch. 20 - Fiscal Policy
Ch. 21 - Revisiting Inflation, Unemployment, and Policy
Ch. 22 - Balance of Payments
Ch. 23 - Exchange Rates
Ch. 24 - Macroeconomic Schools of Thought
Ch. 25 - Dynamic AD/AS Model
Ch. 26 - Special Topics

Concept #1: PPF - Increasing Marginal Opportunity Costs

Concept #2: PPF - Allocative Efficiency with Marginal Analysis

Practice: Chuggy wants to earn a high grade in his microeconomics class, but also loves going to parties and binge drinking. The first graph illustrates Chuggy’s PPF. The second graph denotes his MB curve from binge drinking. What is Chuggy’s marginal cost of binge drinking if he parties for three hours a week?

Practice: Chuggy wants to earn a high grade in his microeconomics class, but also loves going to parties and binge drinking. The first graph illustrates Chuggy’s PPF. The second graph denotes his MB curve from binge drinking.  If Chuggy achieves allocative efficiency, how many hours does he spend binge drinking per week?

Practice: Chuggy wants to earn a high grade in his microeconomics class, but also loves going to parties and binge drinking. The first graph illustrates Chuggy’s PPF. The second graph denotes his MB curve from binge drinking. What is Chuggy’s economics grade when he achieves allocative efficiency?