Chapter 2: Production Possibilities Curve

Objectives	1. Explain how capitalism answers the “What”, “How”, and “For Whom” fundamental economic questions. 2. Understand what is meant by an opportunity cost and give some examples. 3. Explain why an opportunity cost is an implicit cost incurred in making all decisions. 4. Explain why marginal analysis can give rise to more rational decisions. 5. Graphically express a production possibilities model. 6. Understand that the production possibilities model illustrates the problem of scarcity, therefore choices have to be made, and when choices are made that an opportunity cost is incurred. 7. Illustrate production efficiency and inefficiency in the context of the production possibilities graph. 8. Describe what is meant by the law of increasing opportunity cost and why it exists. 9. Explain what is meant by investment. 10. Explain why a nation’s decision to invest and produce more capital goods now will increase the nation’s rate of economic growth over time. 11. Illustrate and explain economic growth in the context of a production possibilities model.
Chapter 2 Activities (Required)	Acquaint yourself with the objectives for this chapter as listed above. Read Chapter 2 of the textbook. Develop a graphic organizer to assist you in learning the material. View Tegrity lecture: “Production Possibilities Curve“ Respond to Chapter 2 Discussion question Respond to Chapter 2 “Economics in Practice (EIP)” reading Respond to the Chapter 2 “International Economics (IE)” reading Prepare written responses to Chapter 2 Objectives
Chapter 2 Activities (Optional)	Answer the “Checkpoints” Answer Study Questions and Problems at end of chapter Take the Practice Quiz found in the textbook.
Assignment (Required)	Submit Unit 1: EIP and IE Assignment through the WebCT Assignment Drop Box Submit Unit 1: Chapter Objectives Review through the WebCT Assignment Drop Box prior to taking Exam 1.
Exam 1	Take Exam 1 using the WebCT Exam feature