Lecture 4 - Announcements While I wont really talk about Ch...

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Announcements While I won’t really talk about Ch 3 in class much, I still recommend that you read it. (there are “practice” HW problems for ch3 on Aplia) We will start ch. 4 on Friday (I know, I said we’d start it today – I lied). Please don’t e-mail me about the iClicker yet. After I post the grades (which I will announce) if you have a zero, and you registered, you should e- mail me.
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SCARCITY, CHOICE, AND OPPORTUNITY COST Economic Growth economic growth An increase in the total output of an economy. It occurs when a society acquires new resources or when it learns to produce more using existing resources.
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Increasing Productivity in Corn and Wheat Production in the United States, 1935–2006 CORN WHEAT Yield Per Acre (Bushels) Labor Hours Per 100 Bushels Yield Per Acre (Bushels) Labor Hours Per 100 Bushels 1935–1939 1945–1949 1955–1959 1965–1969 1975–1979 1981–1985 1985–1990 1990–1995 1998 2001 2006 26.1 36.1 48.7 78.5 96.3 107.2 112.8 120.6 134.4 138.2 145.6 108 53 20 7 4 3 NA a NA a NA a NA a NA a 13.2 16.9 22.3 27.5 31.3 36.9 38.0 38.1 43.2 43.5 42.3 67 34 17 11 9 7 NA a NA a NA a NA a NA a SCARCITY, CHOICE, AND OPPORTUNITY COST
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SCARCITY, CHOICE, AND OPPORTUNITY COST Economic Growth Shifts the PPF Up and to the Right
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Shifting the PPF Things that can shift the PPF: 1. Changes in resource availability Size, health, skill of labor force Availability of other resources 1. Increases in capital stock More output 3. Technological change Employs resources more efficiently 4. Improvements in the rules of the game Formal and informal institutions Economic growth
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PPF – consuming today vs. consuming tomorrow
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Consuming today vs. consuming tomorrow Capital Goods and Consumer Goods consumer goods Goods produced for present consumption. capital goods
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This note was uploaded on 12/20/2011 for the course ECON 2005 taught by Professor Zirkle during the Fall '07 term at Virginia Tech.

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Lecture 4 - Announcements While I wont really talk about Ch...

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