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Unformatted text preview: output than the production of other output) Points on, Inside, and Outside the PPC: Points on the PPC: your resources are efficient, you are on the line of the curve. Efficient- something can’t be made better off without something else being made worse off. Points inside the PPC: Inefficient, due to one of the following reasons: 1. Unemployment of Resources 2. Improper Use of Resources 3. Misallocation of Resources a. Favoritism b. Discrimination c. Government Taking a Role in Markets Points Outside the PPC: Unattainable, except in the two cases: 1. Borrowing from foreign sources (when used for unproductive purposes.) 2. An overheated Economy 3....
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This note was uploaded on 10/02/2011 for the course ECON 200 taught by Professor Cramer during the Spring '07 term at Arizona.
- Spring '07