Menu_24_Aug_11

Menu_24_Aug_11 - E. Opportunity Cost Application:...

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TODAY’S MENU: Wednesday 24 August 2011 I. BUSINESS A. Practice Problems (answers on Moodle) 1. Chapter 1: 6-12, 16-18, 21 2. Chapter 2: 1, 2, 4-8, 10 II. SUBSTANCE A. Economic reasoning 1. Opportunity Cost 2. The Margin 3. Rationality B. Examples of Economic Reasoning 1. A question 2. Either/or Choices a. Bibi and the Concert Ticket, parts 1 and 2 i. Relevant costs ii. Sunk costs 3. How much/many Choices a. Stasia and the Smorgasbord i. Relevant costs ii. Sunk costs 4. The answer a. Delta and the Mayor i. Relevant costs C. Positive vs. normative economics D. Note on graphing: Appendix to Chapter 2
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Unformatted text preview: E. Opportunity Cost Application: International Trade 1. Questions to Answer a. If workers in the United States are the most productive in the world, why do we consume so many imported goods? b. If trade can make everyone better off, why is there so much opposition to it? 2. Tool: Production Possibilities Frontier (PPF) a. Efficiency b. Numerical Slope = Opportunity Cost c. Optimal Point? d. Economic growth III. NEXT TIME A. Finish Chapter 2: The Production Possibility Model...
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Menu_24_Aug_11 - E. Opportunity Cost Application:...

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