The Economic Problem

This is the final opportunity to master the theory which sets the stage for understanding the real of world of International Trade.

 3.4  Explain what makes production possibilities expand.

Do the text Practice Problem 3.4 on page 80.  
Education is one of the factors that cause production possibilities to expand.
Greater quantities and higher qualities of resources contribute toward expansion.
Improved technology contributes toward expansion.

 3.5   Explain how people gain from specialization and trade.

Do the text pages 81-83 to master this concept. .  

 3.4  Explain what makes production possibilities expand.

Education is one of the factors that cause production possibilities to expand.
Greater quantities and higher qualities of resources contribute toward expansion.
Improved technology contributes toward expansion.

 3.5   Explain how people gain from specialization and trade.

Resources are saved and both parties to a voluntary exchange benefit, though not necessarily equally.  
 

Take the optional post-study bonus point quizzes on The Economic Problem on Saturday following Module 3.

Take the optional pre-study bonus point quizzes on International Trade on Sunday preceding Module 4.