Objectives:
With this module, students will learn about
College Board Microeconomics Content Area
I. Basic Economic Concepts
A. Scarcity, choice, and opportunity cost
F. Marginal analysis
Georgia Performance Standards:
SSEF1 The student will explain why limited productive resources and unlimited wants result in scarcity, opportunity costs, and tradeoffs for individuals, businesses, and governments.
a. Define scarcity as a basic condition that exists when unlimited wants exceed limited productive resources.
c. List a variety of strategies for allocating scarce resources.
d. Define opportunity cost as the next best alternative
SSEF2 The student will give examples of how rational decision making entails comparing the marginal benefits and the marginal costs of an action.
b. Explain that rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs.
Web based activities for this module:
Watch the following videos by topic.
Normative vs. Positive Economics
Opportunity Cost:
Thinking at the Margin:
Below are links for application practice:
Non-Web based activities for this module/unit:
With this module, students will learn about
- Normative vs. Positive Economics
- Fallacies
- Opportunity Cost
- Thinking on the Margin
College Board Microeconomics Content Area
I. Basic Economic Concepts
A. Scarcity, choice, and opportunity cost
F. Marginal analysis
Georgia Performance Standards:
SSEF1 The student will explain why limited productive resources and unlimited wants result in scarcity, opportunity costs, and tradeoffs for individuals, businesses, and governments.
a. Define scarcity as a basic condition that exists when unlimited wants exceed limited productive resources.
c. List a variety of strategies for allocating scarce resources.
d. Define opportunity cost as the next best alternative
SSEF2 The student will give examples of how rational decision making entails comparing the marginal benefits and the marginal costs of an action.
b. Explain that rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs.
Web based activities for this module:
Watch the following videos by topic.
Normative vs. Positive Economics
- Quick 2 minute video from investopedia
- This one has a more in-depth explanation with examples and pitfalls in 4 minutes.
Opportunity Cost:
Thinking at the Margin:
- A 90 second explanation
- Prof. Mario Villarreal-Diaz: lots of real life business examples
- Another quick explanation, upbeat and under 3 minutes long.
Below are links for application practice:
Non-Web based activities for this module/unit:
- Textbook Chapter 1