Objectives:
With this module, students will be able to:
Standards:
College Board Microeconomics Content Area
I. Basic Economic Concepts
B. Production possibilities curve
C. Comparative advantage, absolute advantage, specialization, and trade
Georgia Performance Standards:
SSEF2 The student will give examples of how rational decision making entails comparing the marginal benefits and the marginal costs of an action.
a. Illustrate by means of a production possibilities curve the trade offs between two options.
b. Explain that rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs.
SSEF3 The student will explain how specialization and voluntary exchange between buyers and sellers increase the satisfaction of both parties.
a. Give examples of how individuals and businesses specialize.
b. Explain that both parties gain as a result of voluntary, non-fraudulent exchange
Web based activities for this module:
Watch the following videos by topic.
Production Possibilities Frontier:
Comparative Advantage:
Below are links for application practice:
Non-Web based activities for this Module:
With this module, students will be able to:
- Draw a production possibilities curve and identify areas of under-allocation (or inefficient use) of resources, productively efficient areas, and unattainable areas.
- Calculate opportunity cost using the PPF graph.
- Identify ways to shift the PPF and/or attain a greater amount through trade.
- Compare opportunity costs between two different entities.
- Calculate a reasonable terms of trade.
Standards:
College Board Microeconomics Content Area
I. Basic Economic Concepts
B. Production possibilities curve
C. Comparative advantage, absolute advantage, specialization, and trade
Georgia Performance Standards:
SSEF2 The student will give examples of how rational decision making entails comparing the marginal benefits and the marginal costs of an action.
a. Illustrate by means of a production possibilities curve the trade offs between two options.
b. Explain that rational decisions occur when the marginal benefits of an action equal or exceed the marginal costs.
SSEF3 The student will explain how specialization and voluntary exchange between buyers and sellers increase the satisfaction of both parties.
a. Give examples of how individuals and businesses specialize.
b. Explain that both parties gain as a result of voluntary, non-fraudulent exchange
Web based activities for this module:
Watch the following videos by topic.
Production Possibilities Frontier:
Comparative Advantage:
Below are links for application practice:
Non-Web based activities for this Module:
- Chapter 1 and 2 in your textbook
- Economics Workbook Activities - pages and dates listed in Edmodo