Demonstrate an understanding of the value of computing the slope of line, and the relevance of the correlation and causation. The student should be able to use the Production Possibilities Model to synthesize economic relationships such as scarcity, choice, opportunity cost, economic growth, technological change, efficiency, resource utilization and comparative advantage in trade. Define production possibilities frontier. Use the slope and shape of the graphical representation of the Production Possibilities Model to calculate opportunity cost. Define absolute advantage and comparative advantage and show how the production possibilities model is used to determine gains from trading with other nations.
Objectives a. Demonstrate an ability to construct a demand curve from a demand schedule of data.
Demonstrate an ability to construct a supply curve from a supply schedule of data. Distinguish between a change in quantity demanded and supplied and a change in demand and supply. Distinguish between a movement along an existing demand or supply curve and a shift of the curve. The student should be able to demonstrate an understanding of the key measures of economic activity and their interrelationships. Demonstrate the ability to compute Real Gross Domestic Product using Nominal data.