Unit 4: Lesson 21 - Productivity, Diminishing Marginal Returns, and the Demand for Labor
Students produce greeting cards with a fixed number of scissors and markers, and a variable number of workers. They discuss factors affecting workers productivity and the law of diminishing marginal returns. With a partner, they use marginal analysis to solve a problem about how many workers a firm should hire.
- Law of Diminishing Marginal Returns
- Standard #1: Scarcity
- Standard #2: Decision Making
Unit 7: Lesson 41 - Why People Trade: Comparative Advantage
The students decide why people buy foreign goods, and they practice measuring the comparative advantage of different producers.
- Opportunity Cost
- Comparative Advantage
- Standard #6: Specialization