Summarize the general relationship between investment and economic growth. Highlight the main features of a market economy and a command economy. Identify the decision makers and the markets in a market system using the circular flow diagram. Identify the two roles each that households and businesses play using the circular flow diagram.
Differentiate between product and resource markets. Define and identify the terms and concepts listed at the end of the chapter. This chapter is an important introduction to economic reasoning and provides a foundation and framework for learning the principles of economics.
Because Saudi Arabia produces oil very cheaply, it holds a comparative advantage in oil, and it…. Conversely, if the additional marginal cost of obtaining an additional product is more than the additional benefit received, then it is not "worth" it to society to produce the extra unit. Differentiate between explicit and implicit costs. A point consistent with inefficiency, unemployment, or underemployment is identified by the symbol to the inside of the curve. This video deals with economizing problem that is created because of limited resources and unlimited wants the economizing problem is a need to make a choice because of scarcity.
Three topics that should be stressed include: 1 the problem of scarcity and the necessity of choice, 2 the production possibilities model, and 3 the circular flow model. Most students are all too familiar with the problem of scarcity.
Although income and time are not resources in the way in which we define resources in economics, these are what are most scarce to students. Explain how making a budget is dealing with the problem of their limited financial resources and their virtually unlimited wants. Other examples can be how businesses choose between two products when allocating their limited resources and how they choose between two resources when allocating their limited revenues.
To personalize the problem of opportunity cost, ask what else they could be doing during a specific economics class; what are their foregone alternatives? Why might it be more expensive for older students to attend the class than younger ones? About project SlidePlayer Terms of Service.
Published by Jessica Jefferson Modified over 4 years ago. What would you rather be doing?
Some have more resources, more capital, or more land, etc. Some economies do not encourage entrepreneurship.
What gives land value? Equal opportunity for all everyone gets an education. Money only considered as medium of exchange..
The foundation of economics is the economizing problem: society's material wants are unlimited while resources are limited or scarce. Unlimited wants (the first. the choices necessitated because society's economic wants for goods and services are unlimited but the resources available to satisfy these wants are limited (scarce) Economic resources. the human resource that combines the other resources to produce a product, makes nonroutine.
Has to be put to use in investment to see growth. Puts them together….
Can Relinquish one part of resources and not have to give up More of another. No law of increasing cost.
At any point in time, a full-employment, full-production economy must sacrifice some of product X to obtain more of product Y. Do you know why? Economic resources are not completely adapt- able to other uses. Crude Oil is not adaptable to making bread.