Monday, August 29 - Tuesday, August 30, 2011

Opportunity Cost and the Supply of Goods


Students shall be able to

  1. define opportunity cost,

  2. explain why "the theory of supply in economics is not essentially different from the theory of demand,"

  3. explain the monetary value of inputs in the production process,

  4. explain "the cost disease of the service sector,"

  5. explain why only actions have costs,

  6. evaluate misallocation of valuable resources,

  7. explain the relationship between costs and demand,

  8. explain the law of supply, and

  9. explain how higher prices attract resources from other uses.


  1. Quiz: chapter three in McConnell & Brue.

  2. Economics Tutors problem.

  3. Students shall work in groups to answer assigned discussion questions from chapter three in Heyne.

  4. Discuss student group responses (#4).


  1. Participate in the discussion.

  2. Answer the assigned Heyne chapter three discussion questions.



Grade the McConnell & Brue chapter three quiz and the Armchair chapter seven questions. Grade class discussion. Monitor and adjust as necessary.