Current events:
Economist and two time president of the Czech Republic, Vaclav Klaus, addresses the global economy.
As suggested, we can cover the material on scarcity: i.e., scarcity and opportunity cost.
http://www.fte.org/teachers/programs/rightstart/curriculum/scarcityandopportunitycost.html
You should have your own copy of "Identifying Needs," "Identifying Needs – Again," and "ADAM and EVE: In the beginning there was a production possibility frontier."
To understand production possibilities, and to draw your own graph on "ADAM and EVE," we can take a look at the textbook, Core Economics, Gerard W. Stone, in particular the section entitled "Production Possibilities," pp. 33-36, up to but not including "Economic Growth," on p. 36.
After examining the textbook, fill out, based on your own personal preferences, "Identifying Needs," "Identifying Needs – Again." Once you have filled these out, work in a small group, two or three students together, and discuss your answers.
What preferences do you share in common with your group?
What preferences do you not share in common with your group?
Each person should take a turn and explain why they chose the options they did.
Now that you are in your small group, work together on a Production Possibilities Curve for "ADAM and EVE."
I will circulate to assist as necessary.
As review assistance, consider the post, "Every Graph You Need To Know," to supplement your understanding of the Production Possibilities Curve.
HW (you can email the answers to me (gmsmith@shanahan.org).
From Core Economics, Gerard W. Stone, in particular the section entitled "Production Possibilities," pp. 33-36, answer the following questions.
1. What can limit production?
2. What are the three assumptions associated with the production possibilities curve?
3. What is the other name for the Production Possibilities Curve?
4. What do points inside, or to the left, of the Production Possibilities Curve indicate?
