Unpacked Content
Knowledge
Students know:
- Rational decision-making requires comparison of marginal costs and marginal benefits.
- The assumptions made in constructing production- possibilities tables and curves.
- The efficient, inefficient and unattainable points on a production-possibilities curve.
Skills
Students are able to:
- Use marginal costs and marginal benefits to make decisions.
- Use a production-possibilities curve to determine possible combinations of goods and services that can be produced.
- Use a production-possibilities curve to calculate opportunity costs.
- Determine efficient, inefficient and unattainable points on a production-possibilities curve.
Understanding
Students understand that:
- Marginal analysis is necessary to rational decision-making.
- Scarcity leads to limited production possibilities.
- There are efficient, inefficient and unattainable points on a production-possibilities curve.
Vocabulary
- marginal analysis
- marginal benefit
- marginal cost
- production-possibilities curve
