Lesson: The Fundamental Economic Problem Economics

Students will be able to

• understand that the core of the economic problem is the relative scarcity of resources,
• understand that choices are made to allocate resources and maximize benefits,
• understand the relationship between scarcity choice and opportunity cost,
• understand the importance of information for decision making in economics and how the lack of information can lead to information failure,
• define the science of economics,
• understand the definitions and differences between four fields of economics: macroeconomics, microeconomics, welfare economics, and development economics.