ECO 201
Module 3 - Course Objectives

The Economic Problem

3.1  Use the production possibility frontier to illustrate the economic problem.

3.2  Calculate opportunity cost.

3.3  Explain how people gain from specialization and trade.

3.4  Explain how technological change and increases in capital and human capital expand production possibilities.

Assessment  Method

A.  Do the Self-Test questions in your Study Guide as if they were real exam questions, which means do them without looking at the answers. 

B.  You will learn the most from right answers you had to struggle for, and from your wrong answers and mistakes.  Only after you have attempted all the questions should you look at the answers in your Study Guide. 

C.  When you check your answers, be sure to understand where you went wrong and why the right answer is correct.

Take Self-Test 3.1, and Self-Test 3.2, and Self-Test 3.3, and Self-Test 3.4 in your Study Guide before taking Exam #1.