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Ch. 2 - Introductory Economic ModelsWorksheetSee all chapters
All Chapters
Ch. 1 - Introduction to Microeconomics
Ch. 2 - Introductory Economic Models
Ch. 3 - Supply and Demand
Ch. 4 - Elasticity
Ch. 5 - Consumer and Producer Surplus; Price Ceilings and Floors
Ch. 6 - Introduction to Taxes and Subsidies
Ch. 7 - Externalities
Ch. 8 - The Types of Goods
Ch. 9 - International Trade
Ch. 10 - The Costs of Production
Ch. 11 - Perfect Competition
Ch. 12 - Monopoly
Ch. 13 - Monopolistic Competition
Ch. 14 - Oligopoly
Ch. 15 - Markets for the Factors of Production
Ch. 16 - Income Inequality and Poverty
Ch. 17 - Asymmetric Information, Voting, and Public Choice
Ch. 18 - Consumer Choice and Behavioral Economics
The more you want of something, the more you have to give up to get it. Economics dishing out those hard truths!

Concept #1: Increasing Marginal Opportunity Costs

Concept #2: 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: If Chuggy achieves allocative efficiency, how many hours does he spend binge drinking per week?

Practice: What is Chuggy’s economics grade when he achieves allocative efficiency?