SS10.E.2

Social Studies (2010) Grade(s): 12 - Economics

SS10.E.2
Explain how rational decision making entails comparing additional costs of alternatives to additional benefits.

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

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