ECO 105 Lecture Notes - Lecture 2: Opportunity Cost, Natural Disaster
13 Jan 2017
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Document Summary
Calculated by opportunity cost, how is one person relatively better than another. Cultural or societal norms; languages and institutions. The time it takes to complete a task. What gets done in a certain amount of time. Ppc (production possibilities curve) shows the maximum combinations of goods that an economy can produce when resources are used in the best possible way which means you use them according to what they are best at. *points outside the production possibilities frontiers are called unattainable points. *points inside the production possibilities frontiers are called indifferent. *ppc can shift to the left by war, natural disaster, that destroys resources. *ppc can shift to the rights with increase in technology, and resources. All the actual or potential buyers and sellers of a good or service. Demand cure: shows benefit side of market. Supply curve: shows cost side or market. Valuation > wtp (willingness to pay)> vertical interpretation.
