ECON 201 Lecture Notes - Lecture 2: Economic Equilibrium, Ceteris Paribus, Price Ceiling

41 views3 pages

Document Summary

The production possibility frontier (ppf), supply & demand. Shows all the possible combinations of goods or services that can be produced by a country with a given state of technology and limited amount of resources which are fully and efficiently employed. Efficient, inefficient, & unattainable production: ppf shifts, poor vs. high income nations, current consumption vs. investment, frontier vs. urban society; Opportunity cost spread among the entire society, regardless of whether a particular individual wants to consume it or not: a good is called a public good if its benefits are indivisibly. Demand schedule: a good is defined as private if consumers could be denied access to its benefits. Opportunity cost is defined as the value of the best forgone alternative when we make a choice. Defined as the relationship that exists between the price of a good and the quantity demanded of that good, at a given time and keeping all other things constant (ceteris paribus)

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers

Related Documents

Related Questions