9.13.10 - If no full employment, production falls under...

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9.13.10 - Society’s Economizing Problem Scarce Resources Land => plus resources (water, minerals, etc) Labor => physical and mental talents of individuals Capital Manufactured aids in production Entrepreneurial ability Combines resources to produce goods/service - Productions Possibilities Model Illustrates production choices Assumptions Full employment Fixed resources Fixed technology Two goods Production Possibilities Table Lists different combinations of two products can be produced See Pg 19, Table 1.1 Productions Possibilities Curve Not a straight line See Pg 20, Figure 1.2
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Unformatted text preview: If no full employment, production falls under curve Law of Increasing Opportunity Costs As the production of a particular good increases, the opportunity cost of producing an additional unit rises-Unemployment, Growth, and the Future Economic Growth More resources Better quality resources Technological advances Present Choices + Future Possibilities Specialization + International Trade Same as more and better resources Same as improved technology More desired good at lass sacrifice of another good...
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