Transcription of PRODUCTION POSSIBILITIES FRONTIER - جامعة البحرين
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PRODUCTION POSSIBILITIES FRONTIER - جامعة البحرين
Dr. Mohammed Alwosabi Econ 140 1 Notes on Chapter 2 PRODUCTION POSSIBILITIES FRONTIER This chapter reinforces the central themes of Chapter one by laying out the core economic model, the PPF, and using it to illustrate the concepts of scarcity , tradeoff and opportunity cost. It explains, with a model, the concepts of marginal cost and marginal benefit, introduces efficiency, and explains how we can expand PRODUCTION by accumulating capital and improving technology. The economic problem of allocating resources (making choices) in a situation of scarcity can be illustrated by explaining the concept of the PRODUCTION POSSIBILITIES FRONTIER (PPF). PRODUCTION POSSIBILITIES FRONTIER (PPF) refers to the maximum combinations of goods and services an economy can produce efficiently using its available resources and technology within a given period of time. It is the boundary between the goods and services that can be produced from those that cannot.
production possibilities frontier This chapter reinforces the central themes of Chapter one by laying out the core economic model, the PPF , and using it to illustrate the concepts of scarcity,
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Production possibilities, Scarcity, And Production Possibilities, Comparative advantage, Production, Microeconomics: Scarcity, Opportunity Cost & PPF, Principles of Microeconomics, Fall 2007, SCARCITY, CHOICE AND THE PRODUCTION POSSIBILITIES, 2013 Pearson, PRODUCTION POSSIBILITIES Production Possibilities, Spring 2014 Sec 002 Klaus Becker EXAM