ECN 204 Lecture Notes - Lecture 2: Full Employment, Human Resources, Longrun
21 Feb 2018
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Ecn204- week 2: economic growth for the long term (target growth, e. g. goal of full employment, stability, realistic goal, not unstable, e. g. Countries that have low inflation: efficiency, productivity with government policies, e. g. competitive workforce/markets, equity, distribution of growth for different countries, e. g. narrow income disparity (gap between the rich and poor) Property resources: land/natural resources, payments and return: rent, capital, payments and returns: interest. Human resources: labour, payments and return: wages, entrepreneurial ability, takes initiative, makes policy decisions. Innovates: bears risks, payments and return: profits/loss. Resources are not homogenous, meaning they are not equally able to do everything. Ppf summarizes: scarcity non linear ppf, presence of unattainable combinations, choice, more than one combination of goods available, opportunity cost. In terms of the alternatives forgone: negative slope implies trade-off, efficiency, full employment of resources, optimal allocation of resources, growth, shift of the frontier.
