Lesson Plan
Scarcity, Opportunity Costs and Basic Economic Questions
- I. Graphical Analysis
- - graphical analysis will be use the entire semester and it is
generally assumed that students understand it. A brief review
will be given with introduction. You should read the appendix
to chapter 1 and do the graphical problems in the workbook.
If you are unsure of your ability, please come and see the
instructor.
- II. Definitions
- - Economics defined: What is Economics?
- - Scarcity
- - Production
- - Rationality
- - Basic Choices/Basic Economic Questions.
- - what? how? who? when?
- - Opportunity Costs
- - Monetary Price vs. Relative Price
- - Efficiency
- - Allocative Efficiency
- - Productive (or Technological) Efficiency
- - Distributive Efficiency
- - relation of each type of efficiency to the others.
- - Scientific Method/Economic Theory
- - Positive vs. Normative Economics
- - Microeconomics vs. Macroeconomics