Consider the FIVE MAIN ECONOMIC QUESTIONS and the terms TRADE OFF and OPPORTUNITY COST as they are defined below while completing this week's assessment.
The Five Main Economic Questions :What goods and services should be produced?
How should these goods and services be produced?
For whom should these goods and services be produced and distributed?
How can the economy adjust to changes in society?
How should the economy support growth?
Trade-offEvery time a nation, group or individual faces the ECONOMIC QUESTIONS, a choice is made that has a direct impact on individuals and the potential for a trickle-down economic impact (on industry, society, the economy as a whole, etc.)When choices are made (collectively or by an individual) to accept having less of one thing in order to get more of something else, the results are called trade-offs. For example, when one is allocating (limited) funds, the trade-off usually involves reduced spending for some purposes in order to be able to spend more for other more urgent purposes. However, the concept does not apply only (or even primarily) to decisions involving money. A student faced with the choice of spending Saturday studying for a Political Economy exam or shopping at The Mall makes a trade-off of shopping time for study time in deciding how many hours to study and how many to spend shopping. Society also makes trade-offs -- such as, for example, between its need for a more plentiful supply of energy and its need to prevent excessive deterioration of the environment caused by energy production technologies. Evaluating trade-offs, when done carefully and systematically, involves comparing the costs and benefits of each of the available alternatives with each other.
Opportunity cost is defined as the value of the sacrifice involved in a trade off – in other words what you give up in a an economic decision. Most choices are not all-or-nothing decisions; rather they typically involve small changes at the margin -- a little more of this at the cost of a little less of that. Consumers continuously practice marginalism and make trade-offs as they consider whether to buy one more unit or one unit less of a good or service in their efforts to obtain a mix of goods and services that afford them the greatest satisfaction for their available buying power. Producers must constantly be deciding (and reevaluating) their trade-offs in choosing whether to produce somewhat more or somewhat less of a particular product, whether to add a few more workers or lay a few off, whether to invest in more plant and equipment or whether to close down some of existing capacity, and so on -- in their efforts to maximize profits.
This week's choice assessement asks you to look at key trade-offs in US history and evaluate the wisdom of those decisions on a policy level and matters of popular (citizens) choice.
Directions –
1) Actively read the “US Economy: A Brief History” summary at:
www.countrystudies.us/united-states/economy-3.htm
2) Identify TWO moments/ periods in US history wherein individuals in US society and/ or the government as a whole participated in or was affected by an economic trade off.
-What was the opportunity cost of this decision?
-Did it advance or restrict social and economic progress at time when this decision was made?
Your assignment may take the form of:
a -
A blog or typed reflection of 250 words or more
OR
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b-
A visual chart/ graphic organizer/ comic strip or timeline reflecting all of the ideas above
OR
c-A media analysis blog, poster or paper that summarizes the information in a minimum of 150 words and connects the information in the article to that of a recent newscast (include time and date of broadcast or article)
