ECON 1B03 Lecture Notes - Lecture 3: Opportunity Cost

• School: McMaster University
• Department: Economics
• Course: ECON 1B03
• Professor: Aleksandra Gajic

Document Summary

Sept 16 economics ch 2 thinking like an economist slide 27. We"re moving resources away from the computer sector which were really good at making computers, and moving them to the car sector where they aren"t as good ex. computer programmers specialized labour slide 28. Constant opportunity cost; resources or labour are not specialized. Always gives up the same amount of one good for more of another good slide 29. Opportunity costs never change (delta sign) slide 30. Changes to resource availability or technology will shift the ppf. Economic growth shifts ppf to the right and vice versa. If it only affects one of the goods it is called a pivot slide 31. Only shift the computer axis up (or to the right); pivot, car axis stays the same slide 32+33. Shifts the entire ppf to the right slide 34+35. A pivot to the left for the car axis, computer axis stays the same.