ECON 1000 Lecture Notes - Lecture 2: Shampoo, Opportunity Cost, Production Function
8 May 2017
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Econ 1000 week 1, lecture 2, sept 9th. Graphs can give information about relations between production and quantity. (production function) Some graphs can help us understand tradeoffs: opportunity cost is the term that describes trade-off between choices, ex. Buying anti-dandruff shampoo compared to conditioner, buy conditioner you get soft hair but risk getting dandruff and vise-versa: what you have to give up in order to gain more of something else. Production possibility frontier; the point that separates two lines in a graph when used in economics. It describes the relationship of production and opportunity cost when balancing production of multiple products: this also separates the feasible and non-feasible points and possibilities in a graph. You don"t face trade off as long as there is no scarcity, scarcity = trade off. Satiation latin for enough, i. e satisfaction. The only time you will not have scarcity of resources. Scarcity = no longer wanting anything else.
