LEARNING OBJECTIVE: Define scarcity and economic resources.
TOPIC 1.2 Opportunity Cost and Production Possibilities Curve (PPC)
LEARNING OBJECTIVE: a. Define (using graphs as appropriate) the PPC and related terms. b. Explain (using graphs as appropriate) how the PPC illustrates opportunity costs, tradeoffs, inefficiency, efficiency, and economic growth or contraction under various conditions. c. Calculate (using data from PPCs or tables as appropriate) opportunity cost.
TOPIC 1.3 Comparative Advantage and Gains from Trade
LEARNING OBJECTIVE: a. Define absolute advantage and comparative advantage. b. Determine (using data from PPCs or tables as appropriate) absolute and comparative advantage.
TOPIC 1.4 Demand
LEARNING OBJECTIVE: a. Define (using graphs as appropriate) the law of demand. b. Explain (using graphs as appropriate) the relationship between the price of a good or service and the quantity demanded.
TOPIC 1.5 Supply
LEARNING OBJECTIVE: a. Define (using graphs as appropriate) the law of supply. b. Explain (using graphs as appropriate) the relationship between the price of a good or service and the quantity supplied.
TOPIC 1.6 Market Equilibrium, Disequilibrium, and Changes in Equilibrium
LEARNING OBJECTIVE: Define (using graphs as appropriate) market equilibrium. a. Define a surplus and shortage. b. Explain (using graphs as appropriate) how prices adjust to restore equilibrium in markets that are experiencing imbalances. c. Calculate (using graphs as appropriate) the surplus or shortage in the market experience an imbalance.
