Summary ECON 112 (econ112)

Principles of Macroeconomics
SAYRE // MORRIS
Tenth Edition




CHAPTER 1



The Economic
Problem


Prepared by Hanika Bhojwani-Chen, Centennial College

© 2021 McGraw Hill

, CHAPTER 1

The Economic
Problem
Learning Objectives:
1. Describe why economics is a very relevant discipline
2. Define economics and make a distinction between
macroeconomics and microeconomics
3. Demonstrate that scarcity, choice, and opportunity cost are
at the heart of economics, making efficiency a cornerstone of
the discipline


© 2021 McGraw Hill 1-2

, CHAPTER 1

The Economic
Problem
Learning Objectives:
4. Explain why trade results in more productive economies
5. Explain the three fundamental questions that all societies
must address
6. Explain the four different ways that economic societies can
be organized



© 2021 McGraw Hill 1-3

, CHAPTER 1

The Economic
Problem
Learning Objectives:
7. Use the production possibilities model to illustrate choice,
opportunity cost, efficiency, and unemployment
8. List the economic goals of society and explain why they are
often difficult to achieve.




© 2021 McGraw Hill 1-4