ECON 311 Chapter Notes - Chapter 1-2: Resource Allocation, Market Failure, Opportunity Cost
Document Summary
Productivity growth long term increase in average living stqandards. Productivity how much output is produced in one hour of work. Population aging average age of canadians, long term decline in fertility and increase in average life expectancy. Climate change increase in greenhouse gases, long term increase in earth"s average temperature. Global financial stability collapse of us housing market in 2007-2008 caused failure of several major financial institutions. Rising government debt massive public spending to decrease effects of recession. Reduce tariffs on imports = overall benefit for canada but temporary cost for. Economics = study of the use of scarce resources to satisfy unlimited human wants. Opportunity cost every decision comes with a cost; benefit given up by not using them in the best alternative way. Cost measured in terms of other goods/services that could have been obtained instead. Illustrates scarcity (unattainable outside), choice (alternative points along boundary), opportunity cost (negative slope) Concave to origin opportunity cost increases as production increases.
