{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Econ Note

# Econ Note - ECON1110 TA Section 2 Professor Jennifer...

This preview shows pages 1–2. Sign up to view the full content.

ECON1110 TA Section 2 Professor Jennifer Wissink TA Jingxian Zheng Jan 29, 2009 1 Concepts Review 1. Product Possibilities Frontier Position of PPF (e.g. outward shift) represents economic growth caused by acquiring new resources or new technology Curvature "bowed-out curve"- increasing MOC "straight line"- constant MOC 2. Marginal Opportunity Cost (MOC). "MOC of Gun in terms of Butter": MOC G = No. of units of B. Note: G is the horizontal axis in the PPF curve. MOC G = - slope ( PPF ) = 4 B 4 G 3. Comparative Advantage A producer produces the output at a lower MOC in terms of other goods forgone than the other producer. 4. Trade Deﬁnition of exchange rate: The price of one currency in terms of another. Barter: a type of trade in which goods or services are directly exchanged for other goods and/or services, without the use of money. So in Barter, exchange rate is the price of one good in terms of another. 2 Examples A, B, C produce and consume 2 goods: x and y. Given 60 hours of work in week for each person. A B C Max x 15 20 8 Max y 3 5 4 Assume all have straight line PPFs. (a)

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 4

Econ Note - ECON1110 TA Section 2 Professor Jennifer...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online