ECON 10010- Final Exam Guide - Comprehensive Notes for the exam ( 103 pages long!)
Document Summary
69 k: tuition + room and board. Room and board should be subtracted because it is not something unique to the university (cost of living) 55k (tuition) + 40 k (in lost earnings as part of the workforce) extra earnings you get from going to nd instead of just high school. (8): tradeoff. Tractors: point: ordered pair that represents a certain amount of both fruit and tractors. Ex. (20,30) (20,30) boundary: graph represents the production of 20 fruits and 30 tractors, ( , ) is not possible because of scarcity in the real world. Boundary: is the ppf or production possibilities frontier. 30: linear ppf: constant slope, tradeoff is constant because of the slope, the slope communicates the tradeoff. If we know the x and y intercepts, we know the opportunity cost of each. Opportunity cost calculation: to get 40 fruit, you give up 30 tractors. To get 40/40 fruit, you give up 30/40 tractors.
