14/08/15
Lesson 2-Foundation of Economics
Learning Objective: I can explain the basic economic questions: "What to produce?", "How to produce?", and "How much to produce?"
DA: Define economics.
Summarize the meaning of Adam Smith's quote.
Review syllabus, SL/HL.
Chapter Review:
Scarcity, choice, opportunity cost-
Production Possibilities Curve or PPC: Illustrates the concepts of scarcity, choice, and opportunity cost.
DA: Define economics.
Summarize the meaning of Adam Smith's quote.
Review syllabus, SL/HL.
Chapter Review:
Scarcity, choice, opportunity cost-
- economic good vs. free good
- What should be produced?
- How should things be produced?
- Who should things be produced for?
- Free Market
- Planned Economy
- Land
- Labor
- Capital- Physical & Human
- Management
Production Possibilities Curve or PPC: Illustrates the concepts of scarcity, choice, and opportunity cost.
Utility-Total utility or marginal utility.
Micro vs. Macro Economics
Positive and Normative Economics
Circular Flow Model:
Micro vs. Macro Economics
Positive and Normative Economics
- Positive=Capable of being proven to be correct.
- Normative=Subject to personal opinion or belief.
Circular Flow Model:
Rationing systems- planned vs. free market:
Economic Growth
- Measured by the change in a country's national output, value of all good and services produced in an economy in a given time period, normally a year. (GNI/GDP)
- Movement from a point inside the PPC to a point that is nearer to the curve.
Economic Development
- Measure of welfare or a measure of well-being, education, health and social indicators.
- Commonly used development indicator is the Human Development Index.
- Real national income per head, adult literacy, average years of schooling, and life expectancy.
Activity: Download the following link and find the HDI value for your own country or one of your interest:
hdidata.xls | |
File Size: | 1161 kb |
File Type: | xls |
- Look at the countries that are classed as having low HDI and identify which continents they come from.
- Identify any pattern from the first question.
- Identify a country/statistic which you found surprising or interesting, and briefly explain why. Upload this assignment to your google drive folder.