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Chapter 2

ECON 1000 Chapter Notes - Chapter 2: Allocative Efficiency, Opportunity Cost, Technological Change


Department
Economics
Course Code
ECON 1000
Professor
All
Chapter
2

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
Production Possibilities and Opportunity cost
oProduction Possibilities Frontier (PPF)


 !
 
"
 
"
oProduction Eciency
#$%&
''(
)*

+ 
o, -
o.-

oTradeo Along the PPF
/
#/
oOpportunity Cost
0

1
Opportunity cost is a ratio
23%
3

o""4!-
o-4%!""
Increasing Opportunity cost
'3
o3

/1 
-2 5
 
Using Resources Eciently
#*
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