Intro to Microeconomics_Agnello_Date_022310

Intro to Microeconomics_Agnello_Date_022310 - What do we...

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What do we learn from the PP(Productions Possibilities) Curve? - How to organize and utilize resources to maximize production Why are there increasing costs? - Aggregation cause cost to rise - Use the best resources (lowest cost) first 1) For an individual - do a task when your freshest 2) For groups - Use the best people first to perform tasks and use good organization (division of labor) 1) PP Curve answers one basic economic question 1) How to produce? - on PP curve (production efficiency) 2) Show’s economy’s limits , choices , and tradeoffs 2) Consumption efficiency (i.e. what to produce) not answered 3) Who gets the good (i.e. how economic pie is distributed) is not answered. A bigger economic pie is better for all but may be relatively worse for some people *Chapter 2 (Manikew) - Circular Flow Diagram Expenditure = revenue! Chapter 3 - Extend PP Methodology to trading - Within a society (e.g. within a country) - Between societies (e.g. between countries) - Simplified Model (2 producers and 2 goods)
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Intro to Microeconomics_Agnello_Date_022310 - What do we...

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