The Environment for firms and individuals- economic systems
The 3 basic questions for any economy
The decision making framework:
by market forces
Additional Practice and Review (30 min)
1.Read Pages 27-28
2.Read skill builder : Page 29 look at Questions 1-4
3. Come up with another example of adding value through additional processing or refinement of a product
You should be able to answer the following questions:
What point(s) are productively inefficient, efficient, and not possible?
Why is it called the production possibilities frontier?
What part of the graph illustrates diminishing returns?
What is opportunity cost and how does the graph illustrate this concept?
Assignment (For Submission on Wednesday): Prepare a chart demonstrating 6 production possibilities and the opportunity cost of one item. Label a point (L) that demonstrates unemployed resources (inefficient production) and a point unattainable with current resources and technology (M).
Economics is about how individuals, governments, and business make choices. It involves an understanding of various economic concepts, models, and theories as well as an exploration of economic trends, policies, and practices. Through economic inquiry, you will develop your understanding of a range of economic issues, the interests and influence of different stakeholders, and the factors that influence the economic decisions of individuals and institutions.
I look forward to teaching and learning with you,
Good luck and have fun!
Please watch the following:
images: David Sutherland/Photographer’s Choice RF/Getty Images