3: Objectives and Readings

Objectives

When you have completed this lesson, you should be able to do the following:

• demonstrate understanding of the concepts of production efficiency, tradeoffs, opportunity costs, marginal costs and benefits
• explain the difference between comparative advantage and absolute advantage
• explain how markets are coordinated
• describe the importance of price as a signal of value

Readings

• Chapter 2, The Economic Problem, pp. 29 - 54