Division of labor the division of production into

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Unformatted text preview: e division of production into various parts where some workers specialize in one task, while other specialize in another task. Economic concepts Production Possibilities: alternative combinations of production of various goods that are possible, given the economy's resources. Figure 2: The Production Possibilities Curve Shifts in the Production Possibilities Curve The Production Possibilities Curve can shift out as a result of: More workers More capital (e.g. more cameras, more studios) Technological innovations (faster movie editing machines) Figure 3: Shifts in the ProductionPossibilities Curve Shifts in the Production Possibilities Curve How far the production possibilities curve will shift will depend on how much resources are consume now vs. how much is invested for the future. Investing less for the future implies less growth. Investing more for the future implies more growth. Market Economies and the Price System The Three Fundamental Economic Questions: WHAT is to be produced? HOW are these goods to be produced? FOR WHOM are the...
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This note was uploaded on 06/01/2010 for the course ECON STA2012 taught by Professor Fan during the Spring '10 term at A.T. Still University.

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