{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ch02_condensed - Micro 101 Chapter 2 1 Chapter 2 Objectives...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Micro 101, Chapter 2 1 Chapter 2 Objectives : 1. Understand concept of opportunity cost 2. Construct a production possibilities frontier (PPF) a. A production inefficiency @ b. A law of increasing opportunity cost @ 3. Understand advantages of specialization & exchange 4. Define A absolute advantage @ and A comparative advantage @ 5. Understand different types of economic systems _______________________________________: (1) (2) (3) $ ______________________________ (a) (b)
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Micro 101, Chapter 2 2 Economics is the study of how ___________________ $ $ $ $ $ Opportunity cost (O.C.) and society $ consider economy with given number of people; fixed ________, _______, natural resources, etc. $ given economic resources (_____, _____, ______) how do we allocate into production of goods and services? $ pretend only two goods: guns and butter
Image of page 2
Micro 101, Chapter 2 3 Production Possibilities (like a menu): Possibility Butter Guns A 0 B 1 C 2 D 3 E 4 5 F 5 0 PPF for Guns and Butter 0 5 10 15 20 0 2 4 6 Butter Guns $ want to be on the PPF A productive inefficiency @ if inside $ |slope| is the O.C. of another unit of butter $ law of A increasing O.C. @ -when reallocating production to another good, first shift resources __________ to that good (e.g., land used for production of either crops or oil)
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern