In class we went over module 3 and module 4.
In module 3, students were introduced to their first economic model, The Productions Possibility Curve." Students learned about efficient production/allocation, inefficiency and impossibilities. Also remember, economic growth occurs through (1) increase in resources and/or (2) increase in technology.
In module 4, students were introduced to the benefits of trade. We looked at absolute advantage and comparative advantage. *Mutual gains do not depend on person/country being better at producing one type of good-just need a comparative advantage. Trade is always beneficial.
The notes are attached and the homework is listed below.
Notes - Module 3
Notes - Module 4
HW - Complete Module 4 Questions
- Quiz #1 - Modules 1-4, Friday
- Read Module 5 for Friday
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