This module introduces opportunity cost, a fundamental concept in economics. An understanding of opportunity cost contributes to informed decision making at the personal and societal levels.
A public interest group claims that pharmaceutical companies overstate the costs of developing drugs because they include the foregone earnings from the money invested in drug development. The story can be used to discuss the concepts of opportunity cost and normal profit.
Reports of current economic news and analysis on PBS, NewsHour with Jim Lehrer.
What are advertisers really selling? Are there hidden messages in ads? In this lesson, students explore the concept of persuasive advertising and evaluate ads directed at young consumers. A timely lesson that would generate interesting debate for intermediate and middle school students. Links available to other PBS activities and lesson plans.
What is interest? Why are most people paying and earning interest at the same time? How are interest and opportunity cost related? Making informed borrowing, saving, and lending decisions requires a basic understanding of interest. This module will help you better understand what interest is and why borrowers pay interest and lenders/savers receive interest.
Students find the profit-maximizing level of output for a perfectly competitive firm and check the shut-down condition for two different prices.
What is the future value of an asset or cash at a specified date in the future that is equal in value to a specified amount today? You can use a formula to determine that—the future value formula: FV=PV (1+i)n. In this module you will learn more than the formula. You will learn why knowing the future value is such an important concept to understand when planning your financial future.
What is present value? There’s a formula you can use to determine present value, but why does present value matter? Well, suppose that you want to have a certain amount of money in the future—say $25,000 to make a down payment on a home. How much do you have to put away today to achieve that goal? Or, what if you win the lottery—do you take a lump sum payment today or equal payments over the next 26 years? Present value is a tool to help you make choices like these.
Students prepare an essay to explain pricing strategies for two different companies.
An interactive lecture segment utilizing videos from the Antiques Roadshow, designed to create an interactive experience for students and the instructor. After watching an expert appraisal of a rare/unique object students respond to discussion questions. Instructors lead the discussion toward issues of subjective value, willingness to pay, and the price mechanism.
In principles of economics students many times have trouble understanding the concept of opportunity cost, connecting opportunity cost to comparative advantage, and differentiating between absolute advantage and comparative advantage. This activity allows the instructor to detect whether a large number of students exhibit any of these misconceptions, and then focus on the most problematic concepts in class.
In principles of economics students many times have trouble understanding the concept of opportunity cost, connecting opportunity cost to comparative advantage, and differentiating between absolute advantage and comparative advantage. This activity allows the instructor to detect whether a large number of students exhibit any of these misconceptions, and then focus on the most problematic concepts in class.
This website contains the complete text of Alfred Marshall's most famous publication, Principles of Economics.
Principles of Macroeconomics 2e covers the scope and sequence of most introductory economics courses. The text includes many current examples, which are handled in a politically equitable way. The outcome is a balanced approach to the theory and application of economics concepts. The second edition has been thoroughly revised to increase clarity, update data and current event impacts, and incorporate the feedback from many reviewers and adopters. Changes made in Principles of Macroeconomics 2e are described in the preface and the transition guide to help instructors transition to the second edition. The first edition of Principles of Macroeconomics by OpenStax is available in web view here.
By the end of this section, you will be able to:
Discuss the importance of studying economics
Explain the relationship between production and division of labor
Evaluate the significance of scarcity
The pro-con-caveat activity is a quick and easy way to engage students through a more interactive lecture experience.
The Processing Integrity Challenge makes use of game theory to help students learn how to determine relevant application controls for accounting systems to ensure processing integrity is achieved. It specifically addresses source data, data entry, processing, and output controls. The playing format is an adaptation of the television game show, Jeopardy, which is a novel way to reinforce concepts and provide immediate feedback to confirm students' knowledge.
Meet Adam Kokoi, the Director of Innovation and New Technologies for energy company, AES. Adam is a world traveler who is helping to lead the transition from fossil fuels to clean and renewable energy. Engineering Your Future shares real stories from young professionals who want to inform and inspire students about in-demand engineering careers.
