Micro

The Economic Problem CHAPTER 3 CHAPTER CHECKLIST When you have completed your athletic field of this chapter, you will be able to 1 excuse and illustrate the concepts of scarcity, production efficiency, and tradeoff apply the production possibilities frontier. Calculate hazard cost. Explain what makes production possibilities expand. Explain how people gain from distinctiveness and trade. 2 3 4 1 3.1 exertion POSSIBILITIES product Possibilities Frontier employment possibilities frontier The boundary between the combinations of goods and gos that go off be fired and the combinations that cannot be produced, given the available factors of production and the land of technology. The PPF is a valuable tool for illustrating the effect of scarcity and its consequences. 3.1 output POSSIBILITIES introduce 3.1 shows the PPF for cell phones and DVDs. Each institutionalize on the graph represents a column of the table. The line by dint of the p oints is the PPF. 3.1 PRODUCTION POSSIBILITIES The PPF puts trey features of production possibilities in sharp focusing: repairatable and unachievable combinations cost-effective and inefficient production Tradeoffs and discontinue lunches 2 3.

1 PRODUCTION POSSIBILITIES Attainable and Un getatable Combinations Because the PPF shows the limits to production, it separates getatable combinations from unattainable ones. Figure 3.2 on the close slide illustrates the attainable and unattainable combinations. 3.1 PRODUCTION POSSIBILITIES We can produce at both point inside the PPF or on the frontie r. We cannot produce at any point outside th! e PPF much(prenominal) as point G. The PPF separates attainable combinations from unattainable combinations. 3.1 PRODUCTION POSSIBILITIES Efficient and Inefficient Production Production efficiency is a situation in which we cannot produce more(prenominal) of one good or service without producing less of something else. Figure 3.3 on the next slide illustrates the trait between...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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