Wednesday, February 10, 2010

The importance of marginal analysis

OBJECTIVE 

Students shall be able to

1. define sunk cost,

2. define marginal cost, and

3. explain how all economic decisions are marginal decisions.

ACTIVITIES

1. Read article by Dr. Landsburg on escalator standing.

2. Discuss the Landsburg article.

3. Reading and discussion: Armchair chapter seven. [Click here for the text of that chapter.]

4. Discuss chapter 21 in the McConnell text.

 

Assignments:

1. Read "One small step for man ...." and participate in the discussion.

2. Answer the questions from Armchair chapter seven. [For a MS Word version of these questions, for those who would like to type answers, click here. Of course, you have to have Word, or a program that will open a Word file, to open this.]

3. Take notes on McConnell & Brue chapter 21.

 

ASSESSMENT PROCEDURES

Monitor and adjust as necessary.