Economics 1021A/B Chapter Notes -Capital Accumulation, Opportunity Cost, Human Capital

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Michael Parkin

Document Summary

It comes from technological change and capital accumulation. To make economics growth happen, we use more resources for product #1, and fewer for product #2 this leads to growth in product #1 causing product #2 to be able to expand in the future. Economics growth is no magic for abolishing scarcity on the new ppf curve there is still trade-off and opportunity costs. The development of new goods and of better ways of producing those goods and services. The growth of capital resources, including human capital. If a nation devotes all its factors of production to producing consumption goods and services and non to advancing technology and accumulating capital, its production possibilities in the future will be the same as they are today. To expand production possibilities in the future, a nation must devote fewer resources to producing consumption goods and services and some resources to accumulating capital and developing new technologies.