ECO2023 MICROECONOMICS UF STUDY GUIDE // A+
GRADED PRESENTATION // SUPPLY AND DEMAND MARKET
STRUCTURES CONSUMER BEHAVIOR AND ECONOMIC
DECISION-MAKING FOR STUDENT MASTERY // ACADEMIC
YEAR 2025/2026
Every point inside or on the PPF is
attainable (possible)
Any point that is on the PFF is
efficient (product efficient)
Any point outside of the PPF is called
unattainable (with the resources given to us)
One best point on the PPF is not only production efficient but is
allocatively efficient
What causes us to be inside of the PPF versus on the PPF?
misallocation of resource (example: unemployment)
opportunity cost
The next best alternative foregone; Loss/Gain
with a straight line PPF, OC are
constant along the entire PPF
with a bowed-out PPF, the OC are
always increasing in both directions; law of increasing opportunity costs
it is possible but unlikely that a nation's PPF could be ___________; this
will be evident if the OC's are ___________ as we move along the PPF
bowed inward; decreasing
change in the factors of production cause a
, shift in the PPF - due to: land, capital, labor, and entrepreneurial
effort/entrepreneurship
a change in technology; if the technology for the production of ONE good
changes, this will cause a
rotation in the PPF
a change in technology; if the technology for the production of BOTH goods
changes, this can cause a
shift in the PPF
parallel shift of the PPF
won't change OC
rotation of the PPF
would change OC
quantity demanded
at a given price, how much stuff people are willing to buy
law of demand
the idea that as the price of something goes up, the quantity you demand
goes down
income effect (demand)
spending what is in my pocket
substitution effect
queso or guac
demand
marginal social benefit
when there is a change in the price of a good, it is referred to as a change
in the ____________ ________________
quantity demanded; this does NOT shift the demand curve, just move along
the curve
GRADED PRESENTATION // SUPPLY AND DEMAND MARKET
STRUCTURES CONSUMER BEHAVIOR AND ECONOMIC
DECISION-MAKING FOR STUDENT MASTERY // ACADEMIC
YEAR 2025/2026
Every point inside or on the PPF is
attainable (possible)
Any point that is on the PFF is
efficient (product efficient)
Any point outside of the PPF is called
unattainable (with the resources given to us)
One best point on the PPF is not only production efficient but is
allocatively efficient
What causes us to be inside of the PPF versus on the PPF?
misallocation of resource (example: unemployment)
opportunity cost
The next best alternative foregone; Loss/Gain
with a straight line PPF, OC are
constant along the entire PPF
with a bowed-out PPF, the OC are
always increasing in both directions; law of increasing opportunity costs
it is possible but unlikely that a nation's PPF could be ___________; this
will be evident if the OC's are ___________ as we move along the PPF
bowed inward; decreasing
change in the factors of production cause a
, shift in the PPF - due to: land, capital, labor, and entrepreneurial
effort/entrepreneurship
a change in technology; if the technology for the production of ONE good
changes, this will cause a
rotation in the PPF
a change in technology; if the technology for the production of BOTH goods
changes, this can cause a
shift in the PPF
parallel shift of the PPF
won't change OC
rotation of the PPF
would change OC
quantity demanded
at a given price, how much stuff people are willing to buy
law of demand
the idea that as the price of something goes up, the quantity you demand
goes down
income effect (demand)
spending what is in my pocket
substitution effect
queso or guac
demand
marginal social benefit
when there is a change in the price of a good, it is referred to as a change
in the ____________ ________________
quantity demanded; this does NOT shift the demand curve, just move along
the curve
