econprelim1

econprelim1 - Econ Prelim 1 Click to edit Master subtitle...

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Click to edit Master subtitle style 10/19/09 Econ Prelim 1
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10/19/09 Chapter One Concepts Production Possibility Frontier (PPF) Opportunity Cost Marginal Opportunity Cost
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10/19/09 Production Possibility Frontier basic workhorse in economics A description of the possible or feasible combinations of commodities an economy can produce using all available resources efficiently -shows the trade off between more one good in terms of the other
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10/19/09 Opportunity Cost The value of the resources used in that activity when they are measured by what they would have produced when used in their next best alternative. Slope of PPF- marginal opportunity cost Total Opportunity Cost- how much you could have had – what you have LDMR- law of diminishing marginal
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10/19/09 2 types of opportunity cost 1. total opportunity cost 2. marginal opportunity cost Total opportunity cost- always in terms of the other good; the difference between the btter in total that you could have had and the butter you do have
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10/19/09 Positive Economics We lay out the consequences of policy changes that impact the model. We give descriptive takes on what the consequences will be on different situations that impact an economic situation
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10/19/09 Normative Economics What ought to be Much more ethical Value based Ex. People should earn at least 10$ per hour
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10/19/09 Definitions Economics- the study of how individuals and societies choose to
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econprelim1 - Econ Prelim 1 Click to edit Master subtitle...

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