1.1 Scarcity
1. Scarcity - limit supplies; unlimited demands
2. Resources
● Land
● Labor
● Capital
● Entrepreneurship
3. Shortage
● Resource supplied is less than resource demanded at current price
4. Trade-off
● producing/buying/choosing one thing means giving up another
1.2 Opportunity Cost and the PPC
1. Opportunity cost - things you have to give up in order to produce another thing
2. PPC
●
● Efficient - full employment
● Right shift - economic growth
○ when there is better/more resources
■ Technology/capital/labor …
3. Concave curve
● Increasing opportunity cost
● Resources are not perfectly adaptable
4. Producing more capital goods lead to economic growth
1.2B Cost Benefit Analysis
1. Scarcity - limit supplies; unlimited demands
2. Resources
● Land
● Labor
● Capital
● Entrepreneurship
3. Shortage
● Resource supplied is less than resource demanded at current price
4. Trade-off
● producing/buying/choosing one thing means giving up another
1.2 Opportunity Cost and the PPC
1. Opportunity cost - things you have to give up in order to produce another thing
2. PPC
●
● Efficient - full employment
● Right shift - economic growth
○ when there is better/more resources
■ Technology/capital/labor …
3. Concave curve
● Increasing opportunity cost
● Resources are not perfectly adaptable
4. Producing more capital goods lead to economic growth
1.2B Cost Benefit Analysis
