Praxis Economics study plan

Define scarcity, opportunity cost, and marginal analysis, and apply each to three original everyday examples

Compute opportunity cost and comparative advantage from a two-good, two-producer scenario without notes

Distinguish positive from normative statements in a set of ten statements and justify each classification

Sketch and label a production possibilities frontier, then explain points inside, on, and outside it

Derive the shape of demand and supply curves from substitution, income, and diminishing returns reasoning

Calculate equilibrium price and quantity algebraically and after a shift in one curve

Compute and interpret price elasticity of demand, income elasticity, and cross-price elasticity from given data

Relate elasticity values to total revenue changes and to tax incidence between buyers and sellers

Explain consumer choice using budget constraints, indifference curves, and marginal utility per dollar

Derive a firm's short-run cost curves and state why each has its shape

Compare perfect competition, monopoly, and monopolistic competition on price, output, and efficiency

Analyze a monopoly graph to identify profit-maximizing output and deadweight loss

Identify sources of market failure, including externalities, public goods, and asymmetric information

Evaluate corrective taxes, subsidies, and tradable permits against a stated efficiency criterion

Explain factor markets and how marginal revenue product determines wage and labor demand

Interpret a Lorenz curve and Gini coefficient to describe income distribution

Compute GDP using the expenditure and income approaches and distinguish nominal from real GDP

Calculate the GDP deflator, CPI inflation rate, and unemployment rate from given figures

Classify unemployment types and explain the natural rate and Okun's law relationships

Diagram aggregate demand and aggregate supply and trace short-run versus long-run adjustment

Explain money creation through the banking system and compute the money multiplier

Compare fiscal and monetary policy tools and trace their transmission to output and prices

Analyze crowding out and the short-run Phillips curve tradeoff

Distinguish demand-pull from cost-push inflation and identify who gains or loses from unanticipated inflation

Compute comparative advantage and terms of trade for two nations and show gains from trade

Interpret balance of payments accounts and classify transactions as current or financial account

Explain how exchange rates adjust under floating versus fixed regimes and who gains from depreciation

Contrast import substitution, export promotion, and foreign aid as development strategies

Relate indicators such as HDI, GDP per capita, and literacy rates to stages of development

Synthesize all four domains by mapping each formula and graph to its domain and likely question type

Complete two full-length timed practice exams under test conditions

Diagnose remaining weak areas from error patterns and re-teach the three weakest concepts

Review flagged high-frequency concepts, including elasticity, GDP measurement, money multiplier, and comparative advantage