Define economics and Describe the economic perspective (or economic way of thinking ), including definitions of scarcity, opportunity cost, purposeful behavior, utility, marginal analysis (benefits and costs), and how these concepts may be used in decision.
1. Define economics and Describe the economic perspective (or economic way of thinking ), including definitions of scarcity, opportunity cost, purposeful behavior, utility, marginal analysis (benefits and costs), and how these concepts may be used in decision
2. Explain the importance of the other things equal assumption in formulating economic principles.
3. Differentiate between micro and macroeconomics.
4. Explain the economic problem individual s confront when attempting to satisfy unlimited
wants in the face of limited income. Explain the economic problem faced by society when scarce economic resources are allocated in an effort to satisfy society s unlimited wants.
5. Define economic resources and describe the four categories of land, labor, capital, and entrepreneurial ability.
6. Explain the production possibilities model and the law of increasing opportunity cost.
7. Highlight the main features of a market economy and a command economy.
8. Understand the nine important characteristics of a market system.
9. States the Four Fundamental Questions faced by any economic system and explain how a market system achieves economic efficiency.
10. Describe how the market system answers each of these four fundamental questions.
11. Explain how the consumer influences the What goods and services will be produced? question.
12. Explain the role of income distribution on the Who will get the goods and services?
13. Describe the guiding function of prices. Explain the role of competition and the invisible hand in promoting economic efficiency.
14. Describe how the market system promotes technological improvements and capital accumulation.
15. Describe the problems of coordination and incentive that contributed to the demise of command systems.
16. Identify the decision makers and the markets in a market system using the circular flow diagram. Differentiate between product and resource markets.