Understanding the production possibilities frontier (ppf).

Explain the production possibilities frontier. What are the main assumptions?

Sample Production Possibilities Frontier (PPF)- characteristics of the areas under or below the graph

Draw a sample production possibilities frontier and explain the characteristics of each zone.

Efficiency and employment

Describe and point efficiency and employment by using production possibilities frontier (ppf).

Opportunity cost

What is opportunity cost? Demonstrate it on a production possibilities frontier (ppf).

Growth of economy

Explain the growth of economy. In which direction the production possibilities frontier shifts when economy grows?

The differences between the four market structures.

List and explain the four different market structures.

Understanding economic systems.

What is an economic system? How do economic systems differ?

The difference between a market economy and capitalism.

Explain a market economy and capitalism. List and explain the characteristics of capitalism.

Understanding the circular flow model.

Explain the characteristics of the business and household unit of the model.

Simple circular flow model

Define and draw the chart of simple circular flow model.