Chapter 1: Welcome to Economics!
Describe how the study of economics helps to understand consumer behavior and market trends.
How do economic models assist economists in predicting market outcomes? Discuss with an example of a simple economic model.
Identify and explain a real-world scenario where scarcity has led to significant economic decisions.
Chapter 2: Choice in a World of Scarcity
Discuss the concept of opportunity costs in the context of governmental policy-making. Provide an example involving environmental regulations.
How do individual preferences and societal values influence decisions in a resource-limited world? Illustrate with an example.
Explain the role of economic trade-offs in personal financial planning. Provide an example involving saving for retirement versus immediate expenditure.
Chapter 5: Elasticity
Price Elasticity of Demand: Explain what it means when a product has a high price elasticity of demand. Provide an example involving a daily consumer product.
Cross-Price Elasticity of Demand: Discuss how the price elasticity of demand for one good can be affected by changes in the price of another good. Use an example involving gasoline and public transport fares.
Elasticity and Revenue: If a store finds that lowering the price of a product from $20 to $15 increases the quantity sold from 50 units to 70 units, calculate the price elasticity of demand and discuss whether this price change will increase or decrease total revenue.
Chapter 6: Consumer Choices
Budget Line and Choices: Explain how a budget line represents the possible choices available to a consumer. Use a simple example of a consumer deciding between books and movies.
Impact of Price Changes: Discuss how a decrease in the price of a good affects a consumer’s choice under the concept of normal goods. Provide an example involving groceries.
Practical Budgeting Exercise: Imagine a consumer has a budget of $50 to spend on two goods: pizzas and burgers. Pizzas cost $10 each and burgers cost $5 each. Ask the student to calculate how many of each they could buy if they spent all their money, and to draw the budget constraint.
Book: https://openstax.org/books/principles-microeconomics-3e/pages/1-introduction
