Fundamental economic concept of opportunity costs
Production Possibilities Curve
The Production Possibilities Curve is an economic model that
is used to represent many economic concepts such as scarcity, opportunity cost,
and efficiency.
Required Case Readings:
Rittenberg L. and T. Tregarthen (2009). Chapter 1 (sections
1-3): Economics: The Study of Choice Principles of Microeconomic Analysis.
FlatworldKnowledge.com. Retrieved June 6, 2011 from: click here
Rittenberg L. and T. Tregarthen (2009). Chapter 2 (sections
1-4): Confronting Scarcity: Choices in Production Principles of Microeconomic
Analysis. FlatworldKnowledge.com. Retrieved June 6, 2011 from: click here
After reading the materials listed above, please address the
following questions in a 4-5 page essay:
1. How does a college education increase one’s human
capital?
2. Does your college tuition fully reflect the opportunity
cost to you of taking the course? What is your personal opportunity cost of
taking this course?
Review the Case in Point essay – The European Union and the
Production Possibilites Curve, – in section 4 of Chapter 2 in the Principles of
Microeconomics online text listed above to address the following two questions.
3. Does a reduction in trade barriers cause a country to
move closer to its production possibilities curve or does it cause the
production possibilities curve to shift outward? What factors would cause the
production possibilities curve to shift outward (economic growth)?
4. Using the same case, what role did comparative advantage
play in trade among member nations? What was the effect on the standard of
living among trading nations?
Case Assignment Expectations:
Use concepts from the modular background readings as well as
any good quality resources you can find from the cyberlibrary or other internet
search engines. Please be sure to cite all sources within the text and a
reference list at the end of the paper.
The following items will be assessed in particular:
Your ability to understand fundamental economic concept such
as opportunity costs.
Some in-text references to the modular background readings
(APA formatting not required).
The essay should address each element of the assignment.
Remember to support your answers with solid references including the case
readings.
