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Unformatted text preview: goods and services in order to get more of a particular good-if it is a straight line it reflects constant opportunity costs POINTS IN RELATION TO THE CURVE-on it = maximum efficiency-inside it = inefficiency (unemployment or underemployment) unemployment = not working but want to underemployment = college grad carrying bricks-outside it = unattainable with existing resources and technology THE ENTIRE CURVE MAY SHIFT-outward with more resources and better technology-inward if a disease would wipe out 20 million people MARKET MECHANISM--use of prices and sales to signal market desires (Mazda Miata, Play Station 2) MACROECONOMICS VS. MICROECONOMICS-macro = the "big picture," the overall economy (inflation or unemployment)-micro = focuses on individual firms/businesses CETERIS PARIBUS-holding everything else constant; nothing else changes...
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- Spring '11
- Economics, Opportunity costs, constant opportunity costs, possible output combinations, opportunity cost states, individual firms/businesses CETERIS