Foundations of Economic Analysis

Classify economic statements as positive or normative by applying the criterion of testability.

Calculate opportunity cost in simple decision-making scenarios.

Plot a production possibility frontier and compute the opportunity cost of moving between points.

Analyse how market, command, and mixed economic systems address the problem of resource allocation.

Construct demand and supply curves from schedules and identify how non-price determinants shift each curve.

Solve for equilibrium price and quantity from linear supply and demand equations, including after curve shifts.

Calculate consumer surplus and producer surplus from supply and demand functions.

Calculate the market effects of price ceilings and price floors, including shortages, surpluses, and deadweight loss.