Class Notes (835,309)
Canada (509,088)
Economics (1,590)
ECO100Y1 (438)
Jack Carr (32)
Lecture

lecture 3

7 Pages
89 Views
Unlock Document

Department
Economics
Course
ECO100Y1
Professor
Jack Carr
Semester
Fall

Description
Specialization Individuals: produce one (or few) goods Purchase many goods Countries: Export goods Import goods Tradeexchange Source of gains from tradeexchange: Comparative advantage Production possibilities frontier (Constant Opportunity Cost) Gumdrops Chocolates 10 0 8 1 6 2 4 3 2 4 0 5 1. Scarcity 2. Trade-off 3. Opportunity cost 1. Switch from all Gumdrops to all Chocolates Opportunity cost = 105= 2 Gumdrops of one chocolate 2. Switch from allchocolates to all Gumdrops Opportunity cost = 510 =0.5 Chocolates Note: Straight-line (linear) PPF implies that these OC do not change along the PPF ECO20100920 www.notesolution.com
More Less

Related notes for ECO100Y1

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit