Lecture 3

Lecture 3 - All resources are used to max efficiency Shape...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Lecture 3 January 14, 2010 (Chapter 2) 1. PPF a. FE/FP b. Shape c. Growth 2. Comparative Advantage 3. Econ Sys 4. D 5. S 6. Equil 7. Applications Adam Smith 3 refuted principles*** Midterm – chapter 1-4 and a little bit of 5 Sample essay questions – TA Full Employment – FE Does not mean 0% unemployment Milton Freeman The employment of all resources (land labor capital and entrepreneurship) People talk about technology in resources but it is involved with capital Full production – FP FP = Full employment + efficiency
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: All resources are used to max efficiency Shape in notebook Comparative Advantage Cain Abel Fish 1 2 Wheat 1 5 For working one hour with the same amount of resources Abel is a better worker David Ricardo Cain cost of 1 fish is 1 wheat, cost of 1 wheat is 1 fish Abel one fish = hr, 1 hour = 5 wheat, opp cost of one fish is 2.5 wheat, cost of one wheat is 0.4 fish. Comparative advantage*** (show logical computation)...
View Full Document

Page1 / 2

Lecture 3 - All resources are used to max efficiency Shape...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online