ECON 2002.01 Lecture 2: Confronting Scarcity, PPC

• School: Ohio State University
• Department: Economics
• Course: ECON 2002.01
• Professor: Darcy Hartman

Document Summary

Lecture 2 - ch 2 confronting scarcity - choices in. For 1 good b, you must give up . 5 of. Usually dealing with some sort of constraint - scarcity. |slope of cpc| = marginal opp. cost of good on x in terms of good on y i. ii. Production possibilities model shows the g&s an economy is capable of producing, its opportunities, given its resources and technology. An economic system is the set of rules that define how an economy"s resources are. To be owned and how decisions about their use are to be made. Constraint is factors of production - the resources available to the economy for production iii. iv. Land - resources of nature that can be used for production. Can be used for production (oil) i. ii. i. Labor - human effort that can be applied to the production of g&s. Natural ability - an untrained, uneducated person brings to a particular production process.