Econ 1000 – Week1, Lecture2, Sept 9
Graphs can give information about relations between
production and quantity. (Production function)
Some graphs can help us understand tradeoffs.
o Opportunity cost is the term that describes trade-off
o Ex. Buying anti-dandruff shampoo compared to conditioner,
buy conditioner you get soft hair but risk getting dandruff
o What you have to give up in order to gain more of
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
o 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 =
Satiation – Latin for enough, i.e satisfaction. The only time you
will not have scarcity of resources.
Scarcity = no longer wanting anything else.
Tradeoff and opp