TOPICS
- Introduction to
economics and scarcity
- The 5Es of Economics and how
they increase society's satisfaction
- "Economic Growth": achieving
the potential vs increasing the potential
OUTCOMES
What is the "invisible
hand" of capitalism?
What is "SCARCITY" as it is
defined in economics?
(What two things cause the scarcity of goods and
services?
What is "erskinite"? Is erskinite
scarce?
What is the goal of
economics?
What are society's three options
for dealing with scarcity?
What do the 5Es do?
For each of the 5Es:
Define
Explain how it affects
society's satisfaction
Give an example
The 5Es:
ECONOMIC
GROWTH
ALLOCATIVE
EFFICIENCY
PRODUCTIVE
EFFICIENCY
EQUITY
FULL EMPLOYMENT
How does economic growth differ
from the other Es?
What are the three ways to achieve
economic growth?
Economic Growth, what is the
difference between "Achieving the Potential" and
"Increasing the Potential"?
What are the three ways to achieve
productive efficiency?
What is the President Obama
example? Explain how it can be used to show that equity
can increase society's satisfaction. Why did we use such
a strange example?
What is the law of diminishing
marginal utility? What does "marginal" mean?
Why it is GOOD for the people of
Florida if, after a hurricane strikes, the price of
plywood (or other products) increases from $10 a sheet to
$30 a sheet
Why it was GOOD when the Coca-Cola
company (or other companies) lays off 6000 workers as
they did in the year 2000.
Why the price of gasoline in the
United States is TOO LOW (We may have to wait until after
we finish chapter 5 to truly understand
this.)
How does our new definition of
full employment differ from what you will hear on the
news?
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