24 - go to college, etc.) -Product Possibility Frontier...

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Econ: What is Economics? - Ultimate objective is to improve the material well-being of individuals - Satisfy human’s wants and desires o o o Land Labor Capital Entrepreneurial Ability- For someone to be considered an entrepreneur, he/she must come up with a product innovation or a process innovation (organizational changes, and technological innovations) o Finite Number of Resources Basis of any economy Since we have a limited number of resources, everyone’s needs and wants can never be satisfied o Scarcity of resources (labor and capital) dictates price - Opportunity Costs how much one gives up to do something (take phone call,
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Unformatted text preview: go to college, etc.) -Product Possibility Frontier (PPF) (not long-term perspective) o US Economy produces consumer and investment goods o Graph, at any point on the PPF, a certain amount of consumer goods and investment opportunities are created o Fixed/finite resources & static, given technology o Law of Increasing Opportunity Costs When you take resources and convert them to another form, the productivity of the resources is bound to diminish, and thus the output, value-wise, will be less than the potential output lost Resources, or people, might not be suitable for this new activity In dealing with people, an adjustment period is usual, and thus they might need to be re-trained, during which productivity will generally be lower...
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