Wednesday, April 2, 2008

Simple Economic Models - Learning Objectives

After studying this module, you should be able to:
define paper airplane models.
draw, label, and explain a circular-flow diagram.
illustrate opportunity costs using a production possibilities frontier (PPF) diagram.
• illustrate unemployment using a PPF diagram.
• illustrate full employment using a PPF diagram.
• illustrate production inefficiencies using a PPF diagram.
• illustrate the effect of changes in resources or technology on a PPF.
• illustrate the benefits of specialization and trade using a PPF diagram.

1 comment:

  1. Still it’s very complicated for me. I hope there is an easier way to figure out an economic model. I can guess that American economic model is based on credit cards, loans and dreams of living a better life than you can afford. Many people apply to companies like Same Day Loans Payday to make end meet while we still have a huge national debt and as I can see on your site, its clock is ticking.