Reading Guide Ch. 2 (part 2) Due Tues 9/20

1.  Define the Law of Increasing Opportunity Cost.


2.  Illustrate an increasing opportunity cost PPC.  Label point A as fully utilized resources.  Label point B as idle resources.  Label point C beyond the production possibilities frontier.  


3.  Identify a list of factors that may cause an economy to produce at each point.


4.  Pre-read the "economic systems" section beginning on P. 33.


5.  With respect to the Circular Flow Model of the Market Economy, define:
a.  Product Market
b.  Factor Market
c.  Businesses/Firms
d.  Consumers/Households


Have a great weekend!  Get outside!!