And 4 hrs for history 88 10 hrs for each history and

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Unformatted text preview: or History • 88 10 hrs for each History and Econ 70 • PPC 40 58 66 78 There is a limit to what you can achieve, given existing institutions, resources, and technology Every choice you make has an opportunity cost 100 History grade Inefficient vs. Unattainable vs. Efficie nt Inefficient (location?) Unattainable Efficient (location?) (location?) PPF Efficient Output Combinations (Tra de-offs) Scarcity ON PPF Efficiency Butter A Productive efficiency is achieving as much output as possible from a given amount of inputs or resources • • •D •C •B Guns • • Points of efficiency Unattainable with given amounts of inputs Point of inefficiency Shape of PPF& Opportunity Costs Increasing Marginal Opportunity Costs Slope is flat at A This means there is a low opportunity cost to produce more automobiles • • • • Slope is steep at C This means there is a high opportunity cost to produce more automobiles The principle of increasing marginal opportunity cost tells us that opportunity costs increase the more you concentrate on the activity PPF& Economic Growth Economic Growth The ability of the economy to increase the production of goods and services. Economic Growth...
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This document was uploaded on 03/29/2014.

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