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10 Cards in this Set
- Front
- Back
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Scarcity and choice
Scarcity |
Scarcity = problem of choice
I.e. how do we allocate scarce resources? |
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Basic Economic Questions
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How to produce?
For whom to produce? |
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Production Possibilities Frontier (PPF)
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Assumptions about the PPF
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Opportunity cost and the PPF
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-Defn: value of the best foregonealternative -Applied to the current example: -The opportunity cost (O.C.) of producingfood is the quantity of clothing that needsto be given up -Question: What is the O.C. of clothing? |
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The PPF & the Basic Econ Questions?
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Shifts in the PPF |
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Economic systems & the BasicEconomic Questions |
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