Unformatted text preview: Opportunity cost 3 widget 9 whajama 1 widget: 3 whajama Production Possibilities
o Scarcity and choice for the economy as a whole.
0 Simplified view of economy
0 2 types of goods or economic activities
0 Alternative choices production possibilities Why does it bulge out? Increasing opportunity costs
Production Possibility Frontier: maximum combination of goods that can be produced by the
economy with given technology and ﬁxed resources Ceteris paribus: all other things held equal ...
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- Fall '19
- Economics, Alternative choices production possibilities