ECON 1P91 Lecture Notes - Lecture 1: Ice Wine, Opportunity Cost, Type System
10 Sep 2015
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ECON 1P91 Full Course Notes
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Production possibility frontier or curve or boundary: assumptions, attainable and unattainable, measurement. Positive statements: consistent with observation gives us a understanding of economics, and allows us to measure and build and test models. With this type of statement we can: analyze gdp, look over interest rates, cause and effect relationship type system, tells us what it is or will be, appeals to facts, testable. Normative statements: it is a value judgement, basically how one envisions the economy (motherhood and apple pie) words: should or like to or ought to its moral sense. It is what one would like to happen: not testable or factual. Production possibility frontier: you look over maximum production with different combinations of items in the economy. Assumptions in relation to the ppf: fixed quantity of resources, given state of technology such as right now we have these apple products etc, full employment always assume we do:
