ECON 2030 Chapter : ECON 2030 June 10
Document Summary
What we give up money, paying less is a good thing. Clothes, shoes are made in indonesia and vietnam. How complicated from cotton plant to purchase to arrive at charles" home. System of interaction that ends up on his feet. Production possibilities frontier (ppf) (making stuff) (what we are able to do) (border or limit) Illustrates the limits of our ability to produce goods and services in a given time. At any moment in time, we have finite resources for goods and services. If we use all resources for clothing, we would not be producing food. We would get finite amount of food but no clothing. We could allocate our resources in different ways. Different possibilities depending on how we use our resources. Every point we are able to produce at this moment in time. Getting the most output out of available inputs. In order to produce more of one good, we have to give up some of another good.
