{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Econ Chapter 2

Econ Chapter 2 - Chapter 2 Scarcity Choice and economic...

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

View Full Document Right Arrow Icon
Chapter 2 : Scarcity , Choice and economic structure I. Society’s Production Choices II. Production Possibilities Frontier PPF: a curve showing all combinations of two goods that can be produced with the resources and technology currently available A. Increasing Opportunity Cost according to the law of increasing opportunity cost, the more of something we produce, the greater the opportunity cost of producing even more of it causes PPF to have a concave shape why does opportunity cost increase as we move along PPF? Because most resources are better suited to some purposes than to others B. Search for a Free Food no such thing as free lunch- since resources are used I. Operating Inside the PPF reason: resources are not being used in the most productive way a firm, an industry or an entire economy is productively inefficient if it could produce more of at least one good without pulling resources from the production of any other good inefficiency creates benefits for individuals or groups another reason: recession- unemployment
Background image of page 1

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

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 3

Econ Chapter 2 - Chapter 2 Scarcity Choice and economic...

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

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