PSYC 1000 Chapter Notes - Chapter ALL: Externality, Import Quota, International Trade

• School: University of Guelph
• Department: Psychology
• Course: PSYC 1000
• Professor: Dan Meegan

Document Summary

Microeconomics: canada in the global environment 9th edition. Definition: centered on scarcity limited resources (e. g. labour, ingenuity, equipment, etc, choi(cid:272)es (cid:373)ade due to s(cid:272)a(cid:396)(cid:272)it(cid:455) (cid:894)(cid:272)hoi(cid:272)es should (cid:271)e (cid:272)o(cid:374)siste(cid:374)t (cid:449)/ othe(cid:396)s" choices) Two big economic questions: 1: how do choices end up determining what, how, and for whom goods and services are produced. Inside ppf is inefficient b/c resources unused or misallocated or both. Unused resources idle but could be working (e. g. idle factories) Misallocated assig(cid:374) (cid:396)esou(cid:396)(cid:272)e to tasks fo(cid:396) (cid:449)hi(cid:272)h the(cid:455) a(cid:396)e(cid:374)"t the (cid:271)est (cid:373)at(cid:272)h (e. g. assigning skilled pizza chefs to work in a cola factory) Tradeoff along the ppf: choice along ppf involves tradeoff fixed amount/level of resources and tech = limited production (more of one produced at the cost of less of another produced) Decrease in quantity produced of one good/increase in quantity produced of another good (as you move along ppf)