Unit Overview
Economics begins with one core reality: resources are limited, but human wants are unlimited. This unit introduces the foundational concepts that shape all economic reasoning.
By the end of this unit, you will understand how individuals, firms, and governments make decisions under scarcity and how tradeoffs shape economic systems.
Learning Objectives
- Define scarcity and explain why it is the central economic problem.
- Calculate opportunity cost in real-world scenarios.
- Interpret and graph a Production Possibilities Curve (PPC).
- Explain how incentives influence behavior.
- Apply marginal decision-making principles.
Lessons in This Unit
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Lesson 1.1: What Is Economics?
Introduction to economic reasoning, scarcity, and positive vs normative analysis.
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Lesson 1.2: Scarcity & Tradeoffs
Understanding limited resources and the cost of choices.
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Lesson 1.3: Opportunity Cost
Measuring the true cost of decisions in time, money, and alternatives.
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Lesson 1.4: Production Possibilities Curve (PPC)
Visualizing efficiency, growth, and opportunity cost using economic models.
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Lesson 1.5: Economic Systems
How different economic systems organize resources and guide decision-making.
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Lesson 1.6: Incentives & Behavioral Responses
How policies and market signals change decision-making.
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Lesson 1.7: Marginal Thinking
Why rational decisions are made at the margin.
Unit Assessment
After completing all lessons, students should:
- Complete the Unit 1 Quiz
- Submit a short written analysis of a real-world economic tradeoff
- Practice graphing a PPC using spreadsheet software
Self-Paced Learning Guidance
This course is designed to be clear, practical, and self-directed. Move through lessons at your own pace. Each lesson includes explanations, examples, practice questions, and reflection prompts.