Name: Group: 2 Feb 2019

C1- The economic problem

Learning Objective
Explain scarcity, opportunity cost, PPC, causes of positive and negative economic growth

Key words
(Explain or give examples of the following terms from the textbook or your daily life)

Needs and wants

Resources

Scarcity 稀缺性

Opportunity cost 机会成本

Production possibility curve (PPC) ⽣生产可能性曲线

Capital goods 投资品

Consumer goods 消费品

Questions

1 Who decides what, how and for whom to produce in a free market economy?

2 Draw a diagram of production possibility curve(PPC) and explain the meaning of the
different points inside, on and outside the PPC

3 What are the reasons for the outward shift of PPC?

Diagrams

1 Show the difference between movement along the PPF and shift of the PPC.

2 Show how opportunity cost works on the PPC

1 Reading Notes
Name: Group: 2 Feb 2019

C2-Assumptions

Learning Objective
Explain main features, legal definitions and advantages and disadvantages of Oligopoly

Key words
Oligopoly 寡占，寡头垄断
Interdependence 互相依赖
Price wars 价格战
Price rigidity 价格稳定性
Collusion 勾结，共谋
Cartel 卡特尔（经济学术语），垄断联盟，同业联盟
Non-price competition ⾮价格竞争
Niche market ⼩众市场

Preview Questions
1. Using an example, explain the term Oligopoly [2]

2 Reading Notes