The federal government should spend more o n aids

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Unformatted text preview: l government should spend more o n AIDS research. Rising paper prices will increase textbook pri ces. The price of coffee at Starbucks is too high. Review: Scarcity ,Choice, Opportunity Cost Scarcity: Limited Resources vs. Unlimited Wants “There is no such thing as a free lunch.” Resources Land: Natural Resources Labor: Physical & Mental Talents Capital: Produced Goods Further Produc tion Entrepreneurship: Organizing the above 3 categories of resources Production Possibilities Fronti er Maximum In combinations of 2 outputs a given period of time Available resources & technologies An output is a result of an activity • An input is what you put in a production process to achieve an output • 3 Basic Assumptions (PPF) Fixed Resources (quantities & qualities) Fully Employed Resources (no waste & mismanagement) Technology e”) Unchanged (“How to Produc Application: A Production Possibilities Curve Econ Grade 100 A PPC demonstrates: 16 hrs for Econ and 4 hrs f...
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