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Unformatted text preview: opposition to it? 2. Tool: Production Possibilities Frontier (PPF) a. Efficiency b. Numerical Slope = Opportunity Cost c. Optimal Point? d. Economic growth E. How Trade Can Benefit All: An example 1. Assumptions a. Two Countries: England, Portugal b. Two Goods: Wine, Cloth c. All workers in a country are equally productive d. Resources: 100 worker/hours in each country 2. Relevant Concepts a. Productivity = output per worker per hour b. Absolute Advantage = highest productivity c. Comparative Advantage = lowest opportunity cost III. NEXT TIME A. Finish Chapter 2 Finish Chapter 2: The Production Possibility Model B. Begin Chapter 4: Supply and Demand...
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This note was uploaded on 01/16/2012 for the course ECON 2010 taught by Professor Roussel during the Spring '08 term at LSU.
- Spring '08