Econ103 Discussion01 - 2 Law of Diminishing Returns(Law of...

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Discussion 01 August 27, 2010 page 1/1 https://netfiles.uiuc.edu/ebagby2/econ103/discussion01.pdf Econ 103 — Macroeconomic Principles TA Emilie Bagby 1. Production Possibility 1.1 - Consumption Goods vs. Factors of Production / Capital goods / Productive Resources - labor, capital (including human capital), land and entrepreneurship 1.2 - Example: a) Production Possibility Curve (Production Frontier) b) Full Employment / Producing Efficiently c) Underemployment / Producing Inefficiently d) Not possible 1.3 — Capital Accumulation and Technological Change
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Unformatted text preview: 2. Law of Diminishing Returns (Law of Increasing Costs) 3. Opportunity Cost- The value of the next best possible action - The quantity of goods that must be given up to obtain a good - To produce more of one good, most give up some of the other 4. Demand and Supply (Chapter 3) 1.1 Demand - Definitions (ex.: Law of Demand, etc.) - Demand Curve and Changes in Demand 1.2 Supply - Definitions (ex.: Market-day supply, etc.) - Supply Curve and Changes in Supply- Market-Day, Short-Run, and Long-Run Supply 1.3 Equilibrium Price - Excess Demand, Excess Supply, Equilibrium Price...
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