economics

Scarcity, Opportunity Costs, and Basic Economic Questions

I. Graphical Analysis

A. The student needs a basic understanding of graphical analysis to be able to learn economics. There are three basic methods of discussing economic models and concepts: (1) verbal discussions, (2) graphical analysis, and (3) mathematical analysis. Mathematical analysis is an extremely important tool in economics. However, at the principles level only basic mathematical tools (algebra) are used and then only occasionally. Principles will rely mostly on the first two methods for teaching economics with a special emphasis on graphical analysis.

Students cannot learn economic principles without a basic understanding of graphical analysis. However, it is generally assumed that students will have learned the elements of graphical analysis prior to the class. If you have a problem with graphical analysis you must get spend some time making sure you understand how to use and understand graphs.

B. The graphical