Steven M. Reff
Economics Lecturer
University of Arizona
(2007 - 2016)
The 2015 University of Arizona
Five-Star Faculty Award
• Topic 1.1   Scarcity, choice, and opportunity cost
• Topic 1.2   Production possibilities curve
• Topic 1.3   Comparative advantage, specialization, and trade
• Topic 1.4   Economic systems
• Topic 1.5   Property rights and the role of incentives (discussed in Unit 6)
• Topic 1.6   Marginal analysis
CLEP® Principles of Microeconomics Course Preparation
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https://clep.collegeboard.org/clep/pdf/principles-of-microeconomics-fact-sheet.pdf
Unit 1:  Basic Economic Concepts (10%–16%)
https://reffonomics.com/clepmicro1.html
• Topic 2.1   Determinants of Supply and Demand
• Topic 2.2   Market Equilibrium
• Topic 2.3   Consumer surplus, producer surplus, and market efficiency
• Topic 2.4   Price and Quantity Controls
• Topic 2.5   Elasticity
                       • Price, income, and cross-price elasticities of demand
                       • Price elasticity of demand and total revenue
                       • Price elasticity of supply
• Topic 2.6   Tax incidence and deadweight loss
Unit 2:  Supply and Demand (15%–20%)
https://reffonomics.com/clepmicro2.html
Topic 3.1   Total Utility and Marginal Utility
Topic 3.2   Utility Maximization: Equalizing Marginal Utility Per Dollar
Topic 3.3   Individual and Market Demand Curves
• Topic 3.4   Income and Substitution Effects
Unit 3:  Theory of Consumer Choice (5% - 10%)
https://reffonomics.com/clepmicro3.html
Topic 4.1   Production Functions: Short and Long Run
Topic 4.2   Marginal Product and Diminishing Returns
Topic 4.3   Short-Run Costs
                       • fixed cost, variable cost, average cost, marginal cost, and
                           total cost
                       • the relationship between productivity and marginal cost
Topic 4.4   Long-Run Costs and Economies of Scale
Topic 4.5   Revenue vs. Profit
                       • Accounting versus economic profits
                       • Normal profit
                       • Profit maximization: MR=MC rule
Topic 5.1   Characteristics of different market structures
Topic 5.2   Perfect competition
                       • Profit maximization
                       • Short-run supply and shut-down decision
                       • Firm and market behaviors in short-run and long-run equilibria
Topic 5.3   Efficiency and perfect competition
Topic 6.1   Monopoly
                       • Sources of market power
                       • Profit maximization
                       • Inefficiency of monopoly
                       • Price discrimination
                       • Natural monopoly
Topic 6.2   Oligopoly
                       • Interdependence, collusion, and cartels
                       • Game theory and strategic behavior with payoff matrix
                       • Dominant strategies and Nash equilibrium
• Topic 6.3   Monopolistic competition
                       • Product differentiation and role of advertising
                       • Profit maximization
                       • Short-run and long-run equilibrium
                       • Excess capacity and inefficiency
Topic 7.1   Derived Factor Demand
Topic 7.2   Marginal Revenue Product
Topic 7.3   Labor Market and Firms’ Hiring of Labor
Topic 8.1   Public and private goods
                       • Excludability, rivalry, and free-rider problem
                       • Provision of public goods
• Topic 8.2   Externalities
                       • Marginal social benefit and marginal social cost
                       • Positive externalities
                       • Negative externalities
                       • Remedies
• Topic 8.3   Public policy to promote competition
                       • Antitrust policy
                       • Regulation
Topic 8.4   Income distribution
                       • Income inequality
                       • Lorenz curve and Gini coefficient
Topic 8.5   World Trade + Tariff
Unit 4:  Production Costs, Revenue, and Profit (10%–15%)
https://reffonomics.com/clepmicro4.html
Unit 5:  Perfect Competition (10%–15%)
https://reffonomics.com/clepmicro5.html
Unit 6:  Imperfect Competition (Monopoly, Oligopoly,  
              Monopolistic Competition) (10%–15%)
https://reffonomics.com/clepmicro6.html
Unit 7:  Factors Market (6%–12%)
https://reffonomics.com/clepmicro7.html
Unit 8:  Market Failure and The Role of Government (8 - 14%)
https://reffonomics.com/clepmicro8.html
https://clep.collegeboard.org