The Foundations of Microeconomics
|
|
- Buddy Edwards
- 6 years ago
- Views:
Transcription
1 The Foundations of Microeconomics D I A N N A D A S I L V A - G L A S G O W D E P A R T M E N T O F E C O N O M I C S U N I V E R S I T Y O F G U Y A N A 1 4 S E P T E M B E R,
2 Wk 3 Lectures I and II... THE FOUNDATIONS OF MICROECONOMICS (PRODUCTION POSSIBILITIES FRONTIER)
3 Scarcity Scarcity means that society has limited resources and therefore cannot produce all the goods and services people wish to have. Just as each member of a household cannot get everything he or she wants, each individual in a society cannot attain the highest standard of living to which he or she might aspire. All Rights Reserved DR. DAVID P ECHEVARRIA 3
4 Why do we have Scarcity? We have Unlimited Wants and Needs But Limited Resources Create Scarcity So we need to make Choices What to produce, How to Produce, For Whom to produce (tomorrow s lesson)
5 Trade Offs When you choose between two possible uses for a resource, giving up one alternative for another.
6 Trade off: Sleep vs. Study Options Benefit Opportunity Cost 1 hour of extra study time 2 nd hour of extra study time 3 rd hour of extra study time Grade of C on test Grade of B on test Grade of B+ on test 1 hour of sleep 2 hours of sleep 3 hours of sleep
7 Cadillacs and 1946 Opportunity cost of tank = 10 passenger autos M5 Tank Cadillac Coupe
8 Opportunity Costs When you make a trade off, there are costs. The value of time, money, goods, and services given up in an economic choice. The #1 alternative is the Opportunity cost.
9 Opportunity Costs Opportunity cost of any choice What we forego when we make that choice Most accurate and complete concept of cost Opportunity cost of a choice includes both explicit costs and implicit costs Explicit cost dollars actually paid out for a choice Implicit cost value of something sacrificed when no direct payment is made
10 Opportunity Cost and Society All production carries an opportunity cost To produce more of one thing Must shift resources away from producing something else
11 Production Possibilities Frontiers (PPF) The PPF is a valuable tool for illustrating the effects of scarcity and its consequences. PPF is a curve showing all combinations of two goods that can be possibly produced Given the available Factors of production (labor, capital, materials) Production technology (capital intensity) Society s choices are limited to points on or inside the PPF
12 Production Alternative Type of A B C D E Product Pizzas Cars
13
14 Exercise: Plot the PPF A B C D E F G H I J Cupcakes: Robots:
15 PRODUCTION POSSIBILITIES The PPF illustrates three features of production possibilities Attainable and unattainable combinations Full employment and unemployment Tradeoffs
16 PRODUCTION POSSIBILITIES Attainable and Unattainable Combinations We can produce at any point inside the PPF or on the frontier. Points outside the PPF such as point G are unattainable. Because the PPF shows the limits to production, it separates attainable combinations from unattainable ones.
17 Beer Points outside the the PPF are not feasible with existing resources..a Pizza
18 Beer All points on the curve correspond to full use of resources. A B Pizza
19 PRODUCTION POSSIBILITIES Full Employment and Unemployment Full employment occurs when all the available resources are being used. Unemployment occurs when some resources are available but are not used. When resources are fully employed, production occurs at points on the PPF such as D and E. When resources are unemployed, production occurs at a point inside the PPF such as point H. PRODUCTION POSSIBILITIES AND COMPARATIVE ADVANTAGE 19
20 PRODUCTION POSSIBILITIES Tradeoffs A tradeoff is a constraint or limit to what is possible that forces an exchange or a substitution of one thing for something else. When production is on the PPF, we face a tradeoff. To get more of one good we must forgo some of the other good as we move along the PPF. PRODUCTION POSSIBILITIES AND COMPARATIVE ADVANTAGE 20
21 Figure 1: The Production Possibilities Frontier Quantity of All Other Goods per Period 1,000, , ,000 A At point A, all resources are used for "other goods." B C Moving from point A to point B requires shifting resources out of other goods and into health care. 700,000 D 500, ,000 W E At point F. all resources are used for health care. 100, , , , ,000 F Number of Lives Saved per Period
22 Increasing Opportunity Cost According to the law of increasing opportunity cost The more of something we produce the greater the opportunity cost of producing even more of it. The law of increasing opportunity cost is reflected in the shape of the PPC. The curve is bowed out from the origin of the graph.
23 Beer A typical PPF has the following shape:. The curve has a negative slope. The curve is concave to the origin. Pizza 23
24 Beer Concave shape, increasing opportunity costs. Beer given up, the opportunity cost, is increasing Pizza
25 PRODUCTION POSSIBILITIES The PPF and Opportunity Cost: Illustration
26 PRODUCTION POSSIBILITIES The PPF and Opportunity Cost: Illustration 26
27 Consider a straight line PPF Beer Beer given up, the opportunity cost, remains constant Pizza
28 Efficiency and the Production Possibility Frontier The PPF shows choices which are -- efficient (exactly on the frontier) -- inefficient (within the frontier)
29 Beer Periods of unemployment or inefficiency in production correspond to points under the PPF..A Pizza
30 Full production implies two kinds of efficiency, productive efficiency and allocative efficiency. Productive efficiency is the production of any particular mix of goods and services in the least costly way. While, allocative efficiency is the production of that particular mix of goods and services most wanted by society.
31 The PPF and Growth The PPF assumes; Fixed Resources the available supply of factors of production are fixed in both quantity and quality. Nevertheless, they can be reallocated, within limits, among different uses. Fixed Technology the state of technology does not change. These assumptions imply that we are looking at an economy at a certain point in time or over a very short period of time.
32 The PPF and Growth Productivity The PPF will shift outward due to Growth in resources Population growth increases the supply of labour Productivity growth due to increased skills of labour force Increase in capital stock Improvements to land Technological advancement Improvement in machinery and equipment G. Mankiw 32
33
34 3 Quantity of Computers Produced 4,000 3,000 2,300 2,200 A shift in the production possibilities frontier A G A technological advance in the computer industry enables the economy to produce more computers for any given number of cars. As a result, the production possibilities frontier shifts outward. If the economy moves from point A to point G, then the production of both cars and computers increases ,000 Quantity of Cars Produced
35 PRODUCTION POSSIBILITIES The PPF and Economic Growth A country that chooses point A, representing a relatively high level of current consumption and a relatively low level of investment, sees its future PPF shift out to PPF 2010 with A. A country that chooses point B, representing a relatively lower level of current consumption and a relatively higher level of investment, sees its future PPF shift out to PPF 2010 with B.
36 The PPF and Growth Productivity The PPF will shift inward due to Decrease in population (due to disease, war etc.) Loss of land Decrease in productivity due to aging population, poor health etc. G. Mankiw 36
Unit 1: Basic Economic Concepts
Unit 1: Basic Economic Concepts 1 REVIEW 1. Explain relationship between scarcity and choices 2. Differentiate between positive & normative 3. Differentiate between price and cost \ 4. Differentiate between
More informationEconomics for Business Decision Making
Week 1: Explain that: People are rational Consumers and firms use as much of the available information as they can to achieve their goals rational individuals weigh the benefits and costs of each action,
More informationCHAPTER 2 Production Possibilities Frontier Framework
CHAPTER 2 Production Possibilities Frontier Framework Chapter 2 introduces the basics of the PPF, comparative advantage, and trade. This is not exactly a tools of economics chapter; instead it explores
More informationFull file at https://fratstock.eu
CHAPTER 2 THE PRODUCTION POSSIBILITIES FRONTIER FRAMEWORK OF ANALYSIS Chapter 2 introduces the basics of the PPF, comparative advantage, and trade. This is not exactly a tools of economics chapter; instead
More informationHow do we construct and interpret Production Possibility Curves?
How do we construct and interpret Production Possibility Curves? Do Now: Describe any costs associated with taking AP classes as opposed to Regents level classes. 1 I. The Economizing Problem Scarcity
More information+ What is Economics? societies use scarce resources to produce valuable commodities and distribute them among different people
ECONOMICS The word economy comes from a Greek word oikonomia for one who manages a household. is the study of how society manages its scarce resources. Traditionally land, labor, and capital resources
More informationFOR YOUR REVIEW ANSWER KEY
FOR YOUR REVIEW ANSWER KEY CHAPTER 2 SCARCITY, TRADE-OFFS, AND PRODUCTION POSSIBILITIES SECTION 2.1 THE PRODUCTION POSSIBILITIES CURVE 1. a. b. 1 side of beef; 6 kegs of beer; 9 kegs of beer c. 35 kegs
More informationMr Sydney Armstrong ECN 1100 Introduction to Microeconomic Lecture Note (2)
Mr Sydney Armstrong ECN 1100 Introduction to Microeconomic Lecture Note (2) Economics Systems The market System The private ownership of resources and the use of markets and prices to coordinate and direct
More informationMarginal Analysis. Thinking on the Margin. This is what you do when you make a decision. You weigh your options, and make a choice.
1 Marginal Analysis 6 Thinking on the Margin This is what you do when you make a decision. You weigh your options, and make a choice. If I do this, then I can t do that is it worth it? 7 Marginal Analysis
More informationInternational Trade Theory
International Trade Theory www.ashraffeps.yolasite.com Ashraf Samir Ph.D. Contents Define the production possibilities frontier Calculate opportunity cost Examining the PPF and Marginal Cost (The marginal
More informationProduction Possibilities, Opportunity Cost, and Economic Growth
Chapter 2 Production Possibilities, Opportunity Cost, and Economic Growth CHAPTER SUMMARY The What, How and For Whom are introduced as the fundamental economic questions that must be addressed by all societies.
More information2 The Economic Problem
2 The Economic Problem Production Possibilities and Opportunity Cost The production possibilities frontier (PPF) is the boundary between those combinations of goods and services that can be produced and
More informationProduction Possibilities, Opportunity Cost, and Economic Growth
Chapter 2 Production Possibilities, Opportunity Cost, and Economic Growth CHAPTER SUMMARY The What, How and For Whom questions are introduced as the fundamental economic questions that must be addressed
More informationProduction Possibilities, Opportunity Cost, and Economic Growth
Chapter 2 Production Possibilities, Opportunity Cost, and Economic Growth CHAPTER SUMMARY The What, How and For Whom questions are introduced as the fundamental economic questions that must be addressed
More informationFull file at Production Possibilities, Opportunity Cost, and Economic Growth
Chapter 2 Production Possibilities, Opportunity Cost, and Economic Growth CHAPTER SUMMARY The What, How and For Whom questions are introduced as the fundamental economic questions that must be addressed
More informationMicroeconomics, 10e (Parkin) Chapter 2 The Economic Problem. 1 Production Possibilities and Opportunity Cost
Microeconomics, 10e (Parkin) Chapter 2 The Economic Problem 1 Production Possibilities and Opportunity Cost 1) The production possibilities frontier is the boundary between A) those combinations of goods
More informationChapter 2: The Economic Problem. McTaggart, Findlay, Parkin: Microeconomics 2007 Pearson Education Australia
Chapter 2: The Economic Problem Objectives After studying this chapter, you will be able to: Define the production possibilities frontier and calculate opportunity cost Distinguish between production possibilities
More informationLearn the difference between microeconomics and macroeconomics. Understand scarcity and opportunity cost.
1 1.1 Goals of this class Goals of this class Learn what economics is. Learn the difference between microeconomics and macroeconomics. Understand scarcity and opportunity cost. Learn the different factors
More information2 THE ECONOMIC PROBLEM
2 THE ECONOMIC PROBLEM Why does food cost much more today than it did a few years ago? One reason is that we now use part of our corn crop to produce ethanol, a clean biofuel substitute for gasoline.
More informationMicroeconomics, 11e (Parkin) Chapter 2 The Economic Problem. 1 Production Possibilities and Opportunity Cost
Microeconomics, 11e (Parkin) Chapter 2 The Economic Problem 1 Production Possibilities and Opportunity Cost 1) The production possibilities frontier is the boundary between A) those combinations of goods
More informationProduction Possibilities, Opportunity Cost, and Economic Growth
Chapter 2 Production Possibilities, Opportunity Cost, and Economic Growth CHAPTER SUMMARY The What, How and For Whom questions are introduced as the fundamental economic questions that must be addressed
More informationProduction Possibilities, Opportunity Cost, Economic Growth
Chapter 2 Production Possibilities, Opportunity Cost, Economic Growth CHAPTER SUMMARY The "What," "How" and "For Whom" are introduced as the fundamental economic questions that must be addressed by all
More informationMacroeconomics, 10e (Parkin) Chapter 2 The Economic Problem. 1 Production Possibilities and Opportunity Cost
Macroeconomics, 10e (Parkin) Chapter 2 The Economic Problem 1 Production Possibilities and Opportunity Cost 1) The production possibilities frontier is the boundary between A) those combinations of goods
More informationL2 Efficiency, Opportunity Cost, PPF
L2 Efficiency, Opportunity Cost, PPF Pareto Efficiency: A state in which it is impossible to make at least one individual better off without hurting the others. The action that makes at least one individual
More informationChapter 2: Scarcity, Choice and Economic Systems
Chapter 2: Scarcity, Choice and Economic Systems Opportunity Cost How do we decide about the cost of a good/service? Money? Economist: Money is a part of its cost Opportunity Cost: most accurate and complete
More informationFull file at
CHAPTER 2 Economic Activities: Producing and Trading Chapter 2 introduces the basics of the PPF, comparative advantage, and trade. This is not exactly a tools of economics chapter; instead it explores
More informationIn this Lecture. Chapter 2 Production Possibilities Frontier Framework. Law of Increasing Opportunity Costs
Chapter 2 Framework Paul Schneiderman, Ph.D., Professor of Finance & Economics, Southern New Hampshire University 2011 South Western/Cengage Learning In this Lecture An Economy s Production Possibilities
More informationChapter 1 Scarcity, Choice, and Opportunity Costs
Chapter 1 Scarcity, Choice, and Opportunity Costs After reading Chapter 1, SCARCITY, CHOICE, AND OPPORTUNITY COSTS, you should be able to: Define Economics. Identify and explain the major themes in studying
More informationINTRODUCTION TO ECONOMICS
INTRODUCTION TO ECONOMICS Instructor: Ghislain Nono Gueye AUBURN UNIVERSITY 1 The basic economic problem - Scarcity All human beings have various needs (e.g. hunger, thirst, education, etc) All their needs
More informationEconomics is the social science concerned with how individuals, institutions, and society make optimal (best) choices under conditions of scarcity.
Chapter 1: Limits, Alternatives, and Choices Learning objectives: List the ten key concepts to retain for a lifetime. Define economics and the features of the economic way of thinking. Describe the role
More information1. A decrease in unemployment causes the PPF to shift outward (to the right). ANSWER: False
1. A decrease in unemployment causes the PPF to shift outward (to the right). a. True b. False ANSWER: False 2. The law of increasing opportunity cost results from the varying ability of resources to adapt
More informationChapter 3 The Economic Problem
Chapter 3 The Economic Problem 3.1 Production Possibilities 1) The United States produced approximately worth of goods and services in 2004. A) $12 trillion B) $12 billion C) $120 trillion D) $120 billion
More informationResources and scarcity. 1. Use the production possibilities frontier to illustrate the economic problem.
Resources and scarcity Objectives : 1. Use the production possibilities frontier to illustrate the economic problem. 2. Calculate opportunity cost. 3. Explain how specialisation and trade expand production
More informationFILE / WHAT IS THE PRODUCTION POSSIBILITIES CURVE
14 February, 2018 FILE / WHAT IS THE PRODUCTION POSSIBILITIES CURVE Document Filetype: PDF 461.9 KB 0 FILE / WHAT IS THE PRODUCTION POSSIBILITIES CURVE There are several reasons why this is a good place
More informationMULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The production possibilities frontier illustrates the 1) A) goods and services that people
More informationSCARCITY: THREE BASIC QUESTIONS
ECONOMIC SYSTEMS SCARCITY: THREE BASIC QUESTIONS All societies experience scarcity which requires them to make choices, so they must answer three fundamental questions: 1. WHAT to produce? E.g., food,
More information1 Explain and illustrate the concepts of scarcity, production efficiency, and tradeoff using the production possibilities frontier.
3 The Economic Problem When you have completed your study of this chapter, you will be able to CHAPTER CHECKLIST 1 Explain and illustrate the concepts of scarcity, production efficiency, and tradeoff using
More informationLECTURE NOTES. HCS 112 Fundamentals of economics INTRODUCTION. After completing this part, students should be able to:
INTRODUCTION After completing this part, students should be able to: 1. Define economics. 2. Describe the economic perspective (or economic way of thinking ), including definitions of scarcity, opportunity
More informationEconomics: Core Concepts Part II
Economics: Core Concepts Part II When everybody else is better off, they can buy more, they strengthen demand, strengthen the market, strengthen the country. -Carlos Slim Helu The production possibilities
More informationUnit I: Basic Economic Concepts
Unit I: Basic Economic Concepts What is Economics in General? Economics is the science of scarcity. Scarcity is the condition in which our wants are greater than our limited resources. Since we are unable
More informationChapter 2 Production Possibilities, Opportunity Cost,
Chapter 2 Production Possibilities, Opportunity Cost, and Economic Growth CHAPTER IN A NUTSHELL In this chapter, you continue your quest to learn the economic way of thinking. The chapter begins with the
More informationMICROECONOMICS - CLUTCH CH. 2 - INTRODUCTORY ECONOMIC MODELS.
!! www.clutchprep.com CONCEPT: PRODUCTION POSSIBILITIES FRONTIER (PPF) INTRODUCTION AND PRODUCTIVE EFFICIENCY The PPF is a graph showing the combinations of output an economy can produce with its available
More informationChapter 2 Production possibilities and opportunity cost
Chapter 2 Production possibilities and opportunity cost MULTIPLE CHOICE The three fundamental economic questions 1. Why must every nation answer the three fundamental economic questions? A. Because of
More informationPreview from Notesale.co.uk Page 6 of 89
Guns Butter 200 0 175 75 130 125 70 150 0 160 What it shows: the maximum combinations of two goods an economy can produce with its existing resources and technology; an economy can produce at points on
More informationMicro Unit 1, Lesson 1 (one day)
Micro Unit 1, Lesson 1 (one day) ECONOMICS: Concerned with the efficient use and management of limited productive resources to achieve maximum satisfaction of human material wants. ECONOMICS: The study
More informationName Economics: Unit One Study Guide Unit One Standards
Name Economics: Unit One Study Guide Unit One Standards Fundamental Economic Concepts SSEF1: The student will explain why limited productive resources and unlimited wants result in scarcity, opportunity
More informationECON 112 L3 Week 2, T1, Fall Chapter 2 The Economic Problem
ECON 112 L3 Week 2, T1, Fall 2009 Chapter 2 The Economic Problem I. Production Possibilities Frontier The production possibilities frontier (PPF) is the boundary between those combinations of goods and
More informationProduction Possibilities, Opportunity Cost, and Economic Growth
Chapter 2 Production Possibilities, Opportunity Cost, and Economic Growth CHAPTER SUMMARY The What, How and For Whom questions are introduced as the fundamental economic questions that must be addressed
More informationUnit I: Basic Economic Concepts
Unit I: Basic Economic Concepts What is Economics in General? Economics is the science of scarcity. Scarcity is the condition in which our wants are greater than our limited resources. Since we are unable
More informationScarcity implies the need for choice To help us understand those choices it is useful to have a model of human behavior
Macro PPF Highlights WCC Big Ideas Scarcity Utility maximization Economic rationality Opportunity cost Efficiency Specialization of inputs Economic growth Production possibilities Consumption possibilities
More informationChapter 2 Economic Activities: Producing and Trading
Chapter 2 Economic Activities: Producing and Trading MULTIPLE CHOICE 1. Points outside (or beyond) the PPF are a. attainable. b. unattainable. c. efficient. d. inefficient. 2. Which of the following statements
More informationCH 1: Economics and Economic Reasoning
CH 1: Economics and Economic Reasoning What is Economics? Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanism, social customs, and political
More informationMacroeconomics, 4e (Hubbard/O'Brien) Chapter 2 Trade-offs, Comparative Advantage, and the Market System
Macroeconomics, 4e (Hubbard/O'Brien) Chapter 2 Trade-offs, Comparative Advantage, and the Market System 2.1 Production Possibilities Frontiers and Opportunity Costs 1) Scarcity A) stems from the incompatibility
More informationMultiple Choice Questions (please green scantron) 25 questions, 3 points per question
Homework Assignment #1 (Due 9/19, in class) Multiple Choice Questions (please green scantron) 25 questions, 3 points per question 1) Economics is best defined as the study of how people, businesses, governments,
More informationEconomics is the study of how society manages and allocates its scarce resources. Scarcity refers to society s limited number of resources
Economics Notes 10 Lessons From Economics Chapter 1 What is Economics? Economics is the study of how society manages and allocates its scarce resources. Scarcity refers to society s limited number of resources
More informationOCR Economics A-level
OCR Economics A-level Microeconomics Topic 1: Scarcity and Choice 1.4 Opportunity cost Notes The scarcity of resources gives rise to opportunity cost. The opportunity cost of a choice is the value of the
More informationPrinciples of Microeconomics , 10e (Case/Fair/Oster) TB2 Chapter 2 The Economic Problem: Scarcity and Choice
Principles of Microeconomics, 10e (Case/Fair/Oster) TB2 Chapter 2 The Economic Problem: Scarcity and Choice 2.1 Scarcity, Choice, and Opportunity Cost 1) Production is the process by which A) products
More informationEQ: What is the Production Possibilities Frontier?
EQ: What is the Production Possibilities Frontier? The Production Possibilities Frontier, or PPF, is a useful tool in economics to help understand opportunity costs & trade-offs. It is a graphical representation
More informationSOLUTION MANUAL FOR ECON MACROECONOMICS 4 4TH EDITION MCEACHERN
SOLUTION MANUAL FOR ECON MACROECONOMICS 4 4TH EDITION MCEACHERN Link download full: http://testbankcollection.com/download/econ-macroeconomics-4-4thedition-mceachern-solutions COMPLETE DOWNLOADABLE FILE
More informationUnit One, Day One (pages 6-20, 28) ECONOMICS: The study of how limited productive resources are efficiently allocated in a world of unlimited wants.
Unit One, Day One (pages 6-20, 28) ECONOMICS: The study of how limited productive resources are efficiently allocated in a world of unlimited wants. SCARCITY: WANTS EXCEED RESOURCES We want more than we
More informationTest Yourself: Basic Terminology. If all economists were laid end to end, they would still not reach a conclusion. GB Shaw
Test Yourself: Basic Terminology If all economists were laid end to end, they would still not reach a conclusion. GB Shaw What is economics? What is macroeconomics? What is microeconomics? Economics is
More informationUnit 1. Economic Fundamentals. Module 1. Krugman, pp What is Economics? The Fundamental Economic Problem
Unit 1 Economic Fundamentals Module 1 Krugman, pp. 2-21 What is Economics? The Fundamental Economic Problem 1 Unlimited Wants Scarce Resources What do economists study? How people make choices. 2 How do
More informationECON 101 MIDTERM 1 REVIEW SESSION SOLUTIONS (WINTER 2015) BY BENJI HUANG
ECON 101 MIDTERM 1 REVIEW SESSION SOLUTIONS (WINTER 2015) BY BENJI HUANG TABLE OF CONTENT I. CHAPTER 1: WHAT IS ECONOMICS II. CHAPTER 2: THE ECONOMIC PROBLEM III. CHAPTER 3: DEMAND AND SUPPLY IV. CHAPTER
More informationEconomics 103 Microeconomic Principles Section(s) Betty Johnson
Page 1 UNIVERSITY OF VICTORIA Midterm 1 May 2016 Solutions NAME: STUDENT NUMBER: V00 Course Name & No. Economics 103 Microeconomic Principles Section(s) A01 CRN: 31252 Instructor: Betty Johnson Duration:
More informationCh. 1 LECTURE NOTES Learning objectives II. Definition of Economics III. The Economic Perspective CONSIDER THIS Free for All?
Ch. 1 LECTURE NOTES I. Learning objectives In this chapter students will learn: A. The definitions of economics and the features of the economic perspective. B. The role of economic theory in economics.
More information2.1 Economic Questions
2.1 Economic Questions Objectives and Economic Systems Objectives Identify the three questions that all economic systems must answer. Describe a pure market economy, and identify its problems. Describe
More informationECON 2100 (Summer 2016 Sections 10 and 11) Exam #1B
ECON 21 (Summer 216 Sections 1 and 11) Exam #1B Multiple Choice Questions: (3 points each) 1. I am taking of the exam. B. Version B 2. Which of the following statements is a Positive Statement? A. Muhammad
More informationECON 2100 (Summer 2016 Sections 10 and 11) Exam #1A
ECON 21 (Summer 216 Sections 1 and 11) Exam #1A Multiple Choice Questions: (3 points each) 1. I am taking of the exam. A. Version A 2. Which of the following statements is a Positive Statement? A. Muhammad
More informationGot stuff? I. The Economic Problem. Chapter 1: The Economic Way of Thinking
Chapter 1: The Economic Way of Thinking The Economic Problem Production Possibilities Economic Analysis Got stuff? Who made it? How was it made? How did you get it? I. The Economic Problem the basic economic
More informationUse Bubble Sheet for Final Answers: Bubble Last Name, followed by First Name, and your ID number!!
S201 - Exam 1: Fall 07 Professor Walker I. Multiple Choice (3 points each) Use Bubble Sheet for Final Answers: Bubble Last Name, followed by First Name, and your ID number!! 1. The study of economics suggests
More informationThe Economist as a Scientist
Mind Map of Economics Lecture 2 Thinking Like an Economist Dr. Eva Jílková Moravian University College Olomouc, Kosmonautů 1288/1, 779 00 Olomouc eva.jilkova@mvso.cz, veronika.rihova@mvso.cz Thinking Like
More information1 Microeconomics SAMPLE QUESTIONS
Sample Multiple-Choice Questions Circle the letter of each correct answer. 1. The crucial problem of economics is (A) establishing a fair tax system. (B) providing social goods and services. (C) developing
More informationMacroeconomics Sixth Edition
N. Gregory Mankiw Principles of Macroeconomics Sixth Edition 2 Thinking Like an Economist Premium PowerPoint Slides by Ron Cronovich In this chapter, look for the answers to these questions: What are economists
More informationThinking Like an Economist
N. Gregory Mankiw Principles of Macroeconomics Sixth Edition 2 Thinking Like an Economist Premium PowerPoint Slides by Ron Cronovich In this chapter, look for the answers to these questions: What are economists
More informationEconomics. Thinking Like An Economist. The Economist as Scientist. In this chapter, look for the answers to these questions: N.
C H A P T E R 2 Thinking Like An Economist P R I N C I P L E S O F Economics N. Gregory Mankiw Premium PowerPoint Slides by Ron Cronovich 29 South-Western, a part of Cengage Learning, all rights reserved
More informationIn this chapter, look for the answers to these questions
In this chapter, look for the answers to these questions What are economists two roles? How do they differ? What are models? How do economists use them? What are the elements of the Circular-Flow Diagram?
More informationPrinciples of Microeconomics, 11e -TB1 (Case/Fair/Oster) Chapter 2 The Economic Problem: Scarcity and Choice
Principles of Microeconomics, 11e -TB1 (Case/Fair/Oster) Chapter 2 The Economic Problem: Scarcity and Choice 2.1 Scarcity, Choice, and Opportunity Cost 1) The process by which resources are transformed
More informationRunning head: POSSIBILITIES 1. Possibilities. Pallavi Bhardwaj. Capella University
Running head: POSSIBILITIES 1 Possibilities Pallavi Bhardwaj Capella University POSSIBILITIES 2 Possibilities of an Economy The study of macroeconomics raises three fundamental questions: What to produce,
More informationMicroconomics. Chapter 2 Trade-offs, Comparative Advantage, and the Market System. 6 th edition
1 Microconomics 6 th edition Chapter 2 Trade-offs, Comparative Advantage, and the Market System Modified by Yulin Hou For Principles of Microeconomics Florida International University Fall 2017 Production
More informationOpportunity Cost. First quiz on Monday. Your First Job Ten Principles Scarcity Opportunity Cost. Fundamental Economic Concepts and Reasoning
Opportunity Cost First quiz on Monday. Your First Job Ten Principles Scarcity Opportunity Cost Fundamental Economic Concepts and Reasoning But first, a review of scarcity https://www.youtube.com/watch?v=np-dzsdzymk&li
More informationREVIEW FOR TEST I (Chapters 1-4 of Case, Fair, Oster text) HCCS Spring Branch Campus Instructor: J.H. Ewing. What Economics is About
REVIEW FOR TEST I (Chapters 1-4 of Case, Fair, Oster text) HCCS Spring Branch Campus Instructor: J.H. Ewing What Economics is About Economics deals with the human condition that arises when Wants > Limited
More informationChapter 2 Economic Activities: Producing and Trading
Chapter 2 Economic Activities: Producing and Trading 1. Points outside (or beyond) the PPF are a. attainable. b. unattainable. c. efficient. d. inefficient. 2. Which of the following statements is true?
More informationINTRODUCTION TO MICRO ECONOMICS. Zoubida SAMLAL - MBA, CFA Member, PHD candidate for HBS program
INTRODUCTION TO MICRO ECONOMICS Zoubida SAMLAL - MBA, CFA Member, PHD candidate for HBS program Plan Module chapter Task Introduction Introduction to Microeconomics Fondamentals Midterm Consumer and markets
More informationEconomics 2017 (Hubbard/O'Brien) Chapter 2 Trade-offs, Comparative Advantage, and the Market System
Economics 2017 (Hubbard/O'Brien) Chapter 2 Trade-offs, Comparative Advantage, and the Market System 2.1 Production Possibilities Frontiers and Opportunity Costs 1) Scarcity A) stems from the incompatibility
More informationEconomics Lecture notes- Semester 1:
Economics Lecture notes- Semester 1: Lecture 1: What is economics? The word economy comes from the Greek word meaning one who manages a household. Households and economies have much in common; both face
More informationEssentials of Economics 2017 (Hubbard/O'Brien) Chapter 2 Trade-offs, Comparative Advantage, and the Market System
Essentials of Economics 5th Edition Hubbard TEST BANK Full clear download (no error formating) at: https://testbankreal.com/download/essentials-of-economics-5th-editionhubbard-test-bank/ Essentials of
More informationEastern Mediterranean University Faculty of Business and Economics Department of Economics Fall Semester
Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2015 16 Fall Semester ECON101 Introduction to Economics I Quiz 1 Duration: 50 minutes Type A Answers 13 November
More informationWEEK 4: Economics: Foundations and Models
WEEK 4: Economics: Foundations and Models Economics: study of the choices people and societies make to attain their unlimited wants, given their scarce resources Market: group of buyers and seels of good
More informationMacro5e_Ch02_SM.pdf MACRO5e_Ch02_IM.pdf MACRO5_McEachern_Ch02.pdf
Macro5e_Ch02_SM.pdf MACRO5e_Ch02_IM.pdf MACRO5_McEachern_Ch02.pdf CHAPTER 2 ECONOMIC TOOLS AND ECONOMIC SYSTEMS SOLUTIONS TO END OF CHAPTER PROBLEMS 1. This question highlights the importance of ignoring
More informationPrinciples of Macroeconomics, 11e - TB1 (Case/Fair/Oster) Chapter 2 The Economic Problem: Scarcity and Choice
Principles of Macroeconomics, 11e - TB1 (Case/Fair/Oster) Chapter 2 The Economic Problem: Scarcity and Choice 2.1 Scarcity, Choice, and Opportunity Cost 1) The process by which resources are transformed
More informationChapter. The Economic Problem CHAPTER IN PERSPECTIVE
The Economic Problem Chapter CHAPTER IN PERSPECTIVE Chapter studies the production possibilities frontier, PPF. The PPF shows how the opportunity cost of a good or service increases as more of the good
More information1. The key economic concept that serves as the basis for the study of economics is: A. inflation. B. unemployment. C. money. D. scarcity.
Page 1 of 93 1 Student: 1. The key economic concept that serves as the basis for the study of economics is: A. inflation. B. unemployment. C. money. D. scarcity. 2. As a consequence of the condition of
More informationEssentials of Economics, 4e (Hubbard/O'Brien) Chapter 2 Trade-offs, Comparative Advantage, and the Market System
Essentials of Economics, 4e (Hubbard/O'Brien) Chapter 2 Trade-offs, Comparative Advantage, and the Market System 2.1 Production Possibilities Frontiers and Opportunity Costs 1) Scarcity A) stems from the
More informationEconomics, 5e (Hubbard/O'Brien) Chapter 2 Trade-offs, Comparative Advantage, and the Market System
Economics, 5e (Hubbard/O'Brien) Chapter 2 Trade-offs, Comparative Advantage, and the Market System 2.1 Production Possibilities Frontiers and Opportunity Costs 1) Scarcity A) stems from the incompatibility
More informationEconomics: Canada in the Global Environment, Ninth Edition Chapter 2: The Economic Problem
Chapter 2 The Economic Problem Economics: Canada in the Global Environment, Ninth Edition 2.1 Production Possibilities and Opportunity Cost 1) The production possibilities frontier A) is the boundary between
More informationECONOMICS. Mr. Hughes Student Information Syllabus & Class Rules What is Economics? Term of the Day
ECONOMICS Mr. Hughes Student Information Syllabus & Class Rules What is Economics? Term of the Day Unit One Fundamental Economic Concepts Standard SSEF1: The student will explain why limited productive
More information