Chapter One: Limits, Alternatives, and Choices
1.1 Scarcity & Opportunity Costs (02:31)
This clip introduces the concept of scarcity. The need to make tradeoffs and the opportunity costs of taking an action is illustrated via a simple example.
1.2 Economics, MIcroeconomics, and Macroeconomics (04:30)
This clip introduces the economic way of thinking and makes distinctions between microeconomics and macroeconomics.
1.3 Budget Line - Introduction (05:22)
This clip introduces the budget line facing a consumer, including how the line reflects the tradeoff between the consumption of alternative goods and how the line can shift when there is a change in income or in the price of the goods.
1.4 Budget Line - Slopes & Opportunity Costs (05.46)
This clip is slightly more technical, explaining how the slope of a budget line can be interpreted as the consumer’s opportunity costs of consuming additional units of the good in question.
1.5 Production Possibilities Curves - Introduction (06:35)
This clip introduces the concept of production possibilities curve (PPC) and discusses how the curve reflects tradeoff between the productions of alternative goods and services. This lesson also discusses how an economy’s PPC would shift if there is a change in the available resources or in the production technology.
1.6 Production Possibilities Curves - Unemployment & Economic Growth (03:37)
This clip explains how the construct of production possibilities curve can be used to illustrate the concept of unemployment and that of economic growth.
1.7 Production Possibilities Curves - Optimal Allocation (04:25)
This clip explains how to determine the optimal allocation of resources among the production of alternative products, given the economy’s production possibilities curve.
1.8 Production Possibilities Curves - Slopes and Increasing Opportunity Costs (05:46)
This clip is more technical, explaining how the slope of a production possibilities curve can be interpreted as the economy’s opportunity costs of producing additional units of the good in question. Using the construct of production possibilities curve, the lesson also discusses the concept of increasing opportunity costs.