Economics

TOPIC 1 - Introduction to political economy Chapter 1: What is Economics to the highest degree(predicate)? 1. Economics is concerned with addressing the economic problem of pandering measureless wants with our barely resources. 2. The economic problem means that we moldiness cod choices about how to allocate limited resources. Therefore, we essential give precedence to some wants all over others. 3. Each economy mustiness answer the following quartet basic questions: What to gravel? How such(prenominal) to produce? How to produce? How to assign return? 4. Whenever we choose to produce or consume iodin product, we miss out on the alternative products that could have been produced using those resources. This is known as the probability cost. 5. The take hap border is a simple stylus of explaining opportunity cost. Assuming that only dickens goods are produced, it shows that producing more of one good requires us to produce little of the othe r. 6. Improvements in technology will cause the production possibility frontier to shift outwards. 7. Changes in the levels of resources will change the position of the production possibility frontier, moving it outwards (when a level of address equal to(p) resources increases) or inwards (when the level decreases). 8. If an economy is producing at a point downstairs the production possibility curve it is experiencing unemployment or resources. 9. Todays economic choices chance on tomorrows economic outcomes. If we choose to satisfy a want today, we may not be able to satisfy a want in the time to come. 10. In choosing between satisfying subject or future wants: Individuals must possess choices between spending or saving. expenditure satisfies present wants while savings raises future living standards. Businesses must make choices about price, how much to produce, what resources to use and how to manage their employees. Governments dejection limit the choic es of individuals and businesses by affectin! g the cost of choices and other factors underlying their conception making...If you want to get a full essay, order it on our website: OrderEssay.net

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