ECON 2000 Chapter Notes - Chapter 2: Opportunity Cost, Planned Economy, Absolute Advantage

36 views6 pages
18 Jun 2014
School
Department
Course
Professor

Document Summary

Chapter 2: the economic problem: scarcity and choice. This chapter explores the questions of what, how, and for whom to produce. Scarcity and choice in a one-person economy, scarcity and. Choice in an economy of two or more, the production possibility. Frontier, the economic problem: economic systems and the role of government. Market, mixed systems, markets, and governments: scarcity, choice and opportunity cost, definitions. Capital- things that are produced and then used in the production of other goods and services. E. g. factors of production (factors)- the inputs into the process of production, another term for resources. Production- the process that transforms scarce resources into useful goods and services. Inputs or resources- anything provided by nature or previous generations that can be used directly or indirectly to satisfy human wants. Outputs- goods and services of value to households: scarcity and choice in a one-person economy. How to best use resources to satisfy his wants.

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