ECON101 Lecture 3: Chapter 2
22 Jan 2019
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Your opportunity cost (what you sacrificed) = ,000/year x 4 = ,000. 00. So you real total cost (including opportunity cost) of getting a 4 year degree is ,000. The economics problem: scarcity forces us to make choices, and the choices are costly because we must give up other opportunities that we value. If the ppf is straight, the opportunity cost is constant. (which means that no matter which x you choose, you give up the same y). A shift to the right could be due to: Increased productivity (workers become more productive: discover more resources, more workers, technological advances. A shift to the left could be due to: out of resources (e. g. oil, war, out migration, natural disasters, command economy: the government tells us what to do. Types of economies: market economy: example of a pure market economy no government involvement, mixed economy: some government intervention on some things in the economy. Market: a place where buyers and sellers interact.
