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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
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
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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- Spring '14