ECON 1115
Introductory Microeconomics
Complete Study Guide — All 13 Chapters
Independent Study Resource
Not affiliated with or endorsed by Yale University
Based on OpenStax Principles of Microeconomics 3e (CC BY 4.0)
Licensed CC BY 4.0 — commercially sellable
Edition 2026
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,Table of Contents
1. Scarcity, Choice, and Opportunity Cost
2. Demand, Supply, and Market Equilibrium
3. Elasticity and Responsiveness
4. Consumer Choice and Utility
5. Production and Costs
6. Perfect Competition
7. Monopoly and Market Power
8. Monopolistic Competition and Oligopoly
9. Game Theory and Strategic Choice
10. Externalities and Public Goods
11. Government Policy and Market Outcomes
12. Labor Markets and Income Distribution
13. International Trade and Market Allocation
14. Glossary
15. Formula Sheet
16. Final Exam Strategy
17. References
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, Chapter 1 — Scarcity, Choice, and Opportunity
Cost
Learning Objectives
1. Define scarcity and explain why it is the foundational problem of economics.
2. Distinguish between explicit costs and opportunity costs.
3. Calculate opportunity cost in monetary and non-monetary terms.
4. Apply marginal analysis to everyday and economic decisions.
5. Construct and interpret a production possibility frontier (PPF).
6. Identify efficient, inefficient, and unattainable points on a PPF.
7. Explain why a PPF is typically bowed out.
Key Definitions
Term Definition
Scarcity The condition that arises because human wants are unlimited while resources
are limited.
Opportunity Cost The value of the best alternative given up when a choice is made.
Marginal Analysis Comparing the additional benefit of one more unit with its additional cost.
Production Possibility A graph showing the maximum combinations of two goods an economy can
Frontier (PPF) produce with current resources and technology.
Efficiency Using all available resources in the most productive way; a point on the PPF.
Trade-off Sacrificing one good or service to obtain more of another.
1.1 Scarcity
Economics begins with a single fact: resources are limited, but wants are not. This is scarcity. The four
factors of production are land, labor, capital, and entrepreneurship. Because these are finite, every
individual, firm, and government must choose. Every choice carries a trade-off.
1.2 Opportunity Cost
The opportunity cost of a decision is the value of the best alternative forgone. It is not simply the money
paid. Explicit costs are monetary payments; opportunity costs include the value of what you gave up.
Explore our developer-friendly HTML to PDF API Printed using PDFCrowd HTML to PDF
Introductory Microeconomics
Complete Study Guide — All 13 Chapters
Independent Study Resource
Not affiliated with or endorsed by Yale University
Based on OpenStax Principles of Microeconomics 3e (CC BY 4.0)
Licensed CC BY 4.0 — commercially sellable
Edition 2026
Explore our developer-friendly HTML to PDF API Printed using PDFCrowd HTML to PDF
,Table of Contents
1. Scarcity, Choice, and Opportunity Cost
2. Demand, Supply, and Market Equilibrium
3. Elasticity and Responsiveness
4. Consumer Choice and Utility
5. Production and Costs
6. Perfect Competition
7. Monopoly and Market Power
8. Monopolistic Competition and Oligopoly
9. Game Theory and Strategic Choice
10. Externalities and Public Goods
11. Government Policy and Market Outcomes
12. Labor Markets and Income Distribution
13. International Trade and Market Allocation
14. Glossary
15. Formula Sheet
16. Final Exam Strategy
17. References
Explore our developer-friendly HTML to PDF API Printed using PDFCrowd HTML to PDF
, Chapter 1 — Scarcity, Choice, and Opportunity
Cost
Learning Objectives
1. Define scarcity and explain why it is the foundational problem of economics.
2. Distinguish between explicit costs and opportunity costs.
3. Calculate opportunity cost in monetary and non-monetary terms.
4. Apply marginal analysis to everyday and economic decisions.
5. Construct and interpret a production possibility frontier (PPF).
6. Identify efficient, inefficient, and unattainable points on a PPF.
7. Explain why a PPF is typically bowed out.
Key Definitions
Term Definition
Scarcity The condition that arises because human wants are unlimited while resources
are limited.
Opportunity Cost The value of the best alternative given up when a choice is made.
Marginal Analysis Comparing the additional benefit of one more unit with its additional cost.
Production Possibility A graph showing the maximum combinations of two goods an economy can
Frontier (PPF) produce with current resources and technology.
Efficiency Using all available resources in the most productive way; a point on the PPF.
Trade-off Sacrificing one good or service to obtain more of another.
1.1 Scarcity
Economics begins with a single fact: resources are limited, but wants are not. This is scarcity. The four
factors of production are land, labor, capital, and entrepreneurship. Because these are finite, every
individual, firm, and government must choose. Every choice carries a trade-off.
1.2 Opportunity Cost
The opportunity cost of a decision is the value of the best alternative forgone. It is not simply the money
paid. Explicit costs are monetary payments; opportunity costs include the value of what you gave up.
Explore our developer-friendly HTML to PDF API Printed using PDFCrowd HTML to PDF
