ECON 1030 Lecture Notes - Lecture 1: Pareto Efficiency, Target Market, Opportunity Cost

• School: University of Denver
• Department: Economics
• Course: ECON 1030
• Professor: Evers Mark

Document Summary

Using limited resources to try to satisfy unlimited wants. Supply and demand: goods and services exchange, market - exchange. Oil, raw materials: classified as land (ld) natural resources, classified as labor (l) human resources, classified as kapital (k) material resources, classified as knowledge (kn) tech resources. Process of production output = f (inputs) ----- function of inputs. Know-how: q=f(ld, l, k, kn, output depends upon inputs, consumption, distribution. Wow to balance 1, 2, & 3 is microeconomics. All the possible combos of goods/services that an economy can produce given constraints on resources available and time to produce. Points on the ppf are pareto efficient production points: pareto improvement: moving from inside to on the line. Points inside the ppf are inefficient production points: unemployment. Points outside the existing ppf are currently unattainable: not enough resources. Limited resources: homogeneous same productivity (same output for given input, productivity: ratio of amount of output we can produce with given amount of input.