Unpacked Content
Knowledge
Students know:
- Scarcity forces us to choose.
- All choices involve opportunity costs.
- Resources are necessary to produce goods and services.
- How marginal analysis leads to rational decisions.
- How to classify resources.
Skills
Students are able to:
- Calculate opportunity costs.
- Correctly determine whether a particular decision should be made based on the marginal costs and marginal benefits.
- Categorize examples of productive resources.
Understanding
Students understand that:
- Limited resources lead people to make choices.
- Marginal analysis leads to optimal decision-making.
Vocabulary
- scarcity
- opportunity cost
- trade-off
- marginal analysis
- marginal benefit
- marginal cost
- land
- labor
- capital
- entrepreneurial ability
