Содержание
- 2. Economic Efficiency An economy, or economic process, is operating efficiently if it cannot make more of
- 3. Opportunity Cost The quantity of a good we must sacrifice to obtain one more unit of
- 4. Economic Models Models are simplified representations of reality, used to study and understand relationships in the
- 5. Example: A simplified economy with limited resources for production. Resource: 100 workers who can pick berries
- 6. The available technology: Workers [W]: 1 W => 1 bushel of berries per day or 1
- 7. If all of our resources were used to produce fish: 100W*[1 pound per day/W]+50N*[2 bushel per
- 8. We would like to know all the possible combinations of fish and berries our society can
- 9. When we transfer a worker from fish to berry production: We give up one pound of
- 10. Production Possibilities Curve (PPC): A graph of all economically efficient combinations of goods the society is
- 12. Rate of Transformation: [Change in pounds of fish per day]/[Change in bushels of berries per day]
- 13. The PPC will shift outward: If additional productive resources are made available. If current available resources
- 14. Suppose our technology changes so that Nets become more productive than they were previously. The new
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