understands the difference between positive and normative economics.

understands the law of increasing opportunity costs.

understands the charateristics of various economic systems (command, traditional, market, and mixed).

understands price elasticity.

understands the impact of transaction costs.

understands that market failures affect economic decision-making.

understands the theory of comparative advantage.

understands that changes in supply or demand cause relative changes in price.

understands that economic decisions may have unintended consequences.

understands the role of interest rates in economic decision-making.

understands economic theories that have influenced economic systems, both past and contemporary.

demonstrates the difference between analyzing economic realities and predicting economic outcomes.

uses charts and graphs to explain and analyze production possibilities.

analzyes the extent to which various economic systems and national economies rely on government directives and/or private markets to allocate scarce resources.

analyzes the relationship between price elasticity and consumer decisions.

computes elasticity of demand and supply.

explains how transaction costs affect overall production costs and prices.

explains how positive and negative externalities may result in over- or under-production of goods and services.

analyzes the role of public goods and services.

applies the theory of comparative advantage to an analysis of benefits of trade.

describes how price floors and price ceilings may distort price signals to producers and consumers.

explains non-price determinants of supply and demand.

examines the economic effects of government policies.

explains the difference between nominal and real interest rates.

analyzes how savings, investment, and consumer decisions are related to changes in interest rates.

analyzes theories of past and present economists (e.g., Smith, Marx, Keynes, Friedman).

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