Dr. Johnson defines the term "specialization" and reasons for its development in our economy.

Learn more about the economy through this informative lesson. "In this lesson, you will learn how the incentive program affects the personal choices you make in class. You will also analyze how economic incentives can affect behavior."

This video from the Explore Economics series helps kids understand what productivity is and how we can increase productivity. Kids learn that productivity is a measure of output per worker per unit of time. They learn that we can increase productivity through division of labor, investment in human capital, and using new capital resources.

Basic introduction to what microeconomics and macroeconomics study. A bit on Adam Smith. This video will enforce standard EPF. 1

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In this module, students learn that even when absolute advantage exists, two parties can still benefit from trading, if they do so according to their comparative advantage. Miss Information tries to persuade Andy that his new car repair and snow removal business is doomed to failure because Jack has the absolute advantage in both tasks. However, Jack dispels Miss Information’s misinformation by suggesting they work together and exploit their comparative advantage.
Miss Information tries to persuade Andy that his new car repair and snow removal business is doomed to failure because Jack has the absolute advantage in both tasks. However, Jack dispels Miss Information’s misinformation by suggesting they work together and exploit their comparative advantage.

Miss Information tries to persuade Andy that his new car repair and snow removal business is doomed to failure because Jack has the absolute advantage in both tasks. However, Jack dispels Miss Information’s misinformation by suggesting they work together and exploit their comparative advantage.

In this module, students learn about the production possibilities curve, a graphic representation of output combinations that can be produced given an economy’s available resources and technology. With their new-found wealth, Andy and Jack have acquired islands, Los Andeles and Jackramento, giving Jack the perfect opportunity to teach Jack about production possibilities, opportunity cost, and the efficiencies of trade according to comparative advantage.

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:

Define absolute advantage, comparative advantage, and opportunity costs
Explain the gains of trade created when a country specializes

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