INTRODUCTION/ Chapter 1: What is Economics

Well, it's the end of the road... so to provide you with the best possible review for your exam: here are all the PowerPoints complete with typos

P.S.- here is the freakonomics url: https://youthentrepreneurs.org/content/upload/files/freakonomics.pdf

1.what is economics from jtoma84

I. Production Possibility Curve Explanation:

What can cause things to not be able to operate outside of the curve? Well an example could be technology that is not feasible. Or maybe what is necessary to have a point outside of the curve, for instance more capital [whether it is money or resources] is not attainable currently.

II.- Curve Shifts to the Right

Now- remember: If we introduce more capital/resources or any additional Factors of Production, it is possibile to shift the curve to the right! Like so: [look below]

Let's look at an example of how our curve can shift to the right:

III. Points INSIDE of the Curve: Now what happens if we plot something INSIDE of the Curve? Well this…

This plot point shows that we haven't lost any Factors of Production, we just are not using those resources efficiently. We will examine reasons as to why this occurs later on in the Semester… specifically when we discuss the Law of Diminishing Returns.

IV. Curve Shifts INWARD:

If the curve shifts inwards, well that means we are losing some sort of Factor of Production and then it will look like this: