ECON102 Chapter Notes - Chapter 2: Deflation, Economic Stability, Full Employment
16 Dec 2018
School
Department
Course
Professor
Document Summary
Decisions are made about what will be produced. The economic problem of scarcity calls for careful decision making because resources are scarce relative to economic wants. The production possibilities curve describing the production choices facing an economy. (or curve) an economic model consumer goods and capital goods the economy is capable of producing efficiently with all its available resources. Depicts all of the possible combinations of. Scarcity of resources implies that the economy must choose what it will produce. Every society must decide how it is going to produce its goods and services. Important that an economy conserve and use its scarce resources as efficiently as possible. Efficiency occurs when as few resources as possible are used to produce the most desired goods and services. Focuses on the distribution of goods and services. Moral and political influences are very strong when decisions are made about output distribution.
