, THE ECONOM PROBLEM
↑
The scarcity of resources in relation to the unlimited wants and needs of indivisuals and societies.
scarcity being
-> short in
supply ,
shortage
opportunity cost > next best alternative
forgone
-
indivisuals businesses
agents of an
economy
>
-
households
, , , governments
A factors of Land Capital
production >
-
,
Labour
, , entrepreneurship
examples :
Land >
-
extracted resources- rent raw materials
Labour- >
physical/human input-wages engineer
interest
capital >
-
machinery
-
computers
entrepreneurship- profit Mcdonald's franchisor
>
manager- Ray Kroc
needs > can't survive without want for entertainment
- wants >
something
-
renewable resources > natural resources that can be
replenished in a short period of time
Sunlight
-
-
Fossil feels
non-renewable resources > natural substances that cannot be
replaced quickly
- -
A
production possibility frontier is a curve on a
graph that illustrates the possible quantities that can be produced of two
products if both
depend on the same finite resources for their manufacture.
output &
of ·
F > output combination that is not yet
pizza PPE
attainable as it lies
beyond the
↳·
·
A
all are
in tcunemployed
combinations
4
-
E
resources)
·
DPF
7
output
Of
sugar
does not apply
L scarcity
(markett
Free demand (economic failure/income inequality
economy >
-
economic system on
supply and with little or no
government control
growth/efficiency -
X market
Command
economy >
-
an economic system which is controlled by the
government (low
unemployment & inequality -
X lack of competition & efficiency(
mixed > Socialism and Capitalism//provides/promotes innovation X higher debt (
economy system that combines both
- -
a
, The of returns - >
law
diminishing not all resources are the same
used
>
- extra units of a resource are in production that will lead to smaller output
assets used production
capital goods >
-
physical in
consumer goods >
-
finished products that consumers use
physical capital >
-
man made goods
> used
capital personal assets
production
-
human in
sustainable resources > U can use without
depleting them
-
non-sustainable resources > non-renewable resources
-
N
shift to the
right
↑
&
outward shift in -
improved technology
T the PPC
& services
more
goods new resources
=
&
-
- more
capital & consumer human capital
- -
goods
7
N
↓
↓ inwards shift in shift to the left
↓ the PPC
- decrease goods & services - outdated technology
X
-
decreased available resources
E
7
.
3 I's what How-whom
needed wanted
missing market > a market failure is the failure to produce some
goods and services despite being or
-
,
↑
The scarcity of resources in relation to the unlimited wants and needs of indivisuals and societies.
scarcity being
-> short in
supply ,
shortage
opportunity cost > next best alternative
forgone
-
indivisuals businesses
agents of an
economy
>
-
households
, , , governments
A factors of Land Capital
production >
-
,
Labour
, , entrepreneurship
examples :
Land >
-
extracted resources- rent raw materials
Labour- >
physical/human input-wages engineer
interest
capital >
-
machinery
-
computers
entrepreneurship- profit Mcdonald's franchisor
>
manager- Ray Kroc
needs > can't survive without want for entertainment
- wants >
something
-
renewable resources > natural resources that can be
replenished in a short period of time
Sunlight
-
-
Fossil feels
non-renewable resources > natural substances that cannot be
replaced quickly
- -
A
production possibility frontier is a curve on a
graph that illustrates the possible quantities that can be produced of two
products if both
depend on the same finite resources for their manufacture.
output &
of ·
F > output combination that is not yet
pizza PPE
attainable as it lies
beyond the
↳·
·
A
all are
in tcunemployed
combinations
4
-
E
resources)
·
DPF
7
output
Of
sugar
does not apply
L scarcity
(markett
Free demand (economic failure/income inequality
economy >
-
economic system on
supply and with little or no
government control
growth/efficiency -
X market
Command
economy >
-
an economic system which is controlled by the
government (low
unemployment & inequality -
X lack of competition & efficiency(
mixed > Socialism and Capitalism//provides/promotes innovation X higher debt (
economy system that combines both
- -
a
, The of returns - >
law
diminishing not all resources are the same
used
>
- extra units of a resource are in production that will lead to smaller output
assets used production
capital goods >
-
physical in
consumer goods >
-
finished products that consumers use
physical capital >
-
man made goods
> used
capital personal assets
production
-
human in
sustainable resources > U can use without
depleting them
-
non-sustainable resources > non-renewable resources
-
N
shift to the
right
↑
&
outward shift in -
improved technology
T the PPC
& services
more
goods new resources
=
&
-
- more
capital & consumer human capital
- -
goods
7
N
↓
↓ inwards shift in shift to the left
↓ the PPC
- decrease goods & services - outdated technology
X
-
decreased available resources
E
7
.
3 I's what How-whom
needed wanted
missing market > a market failure is the failure to produce some
goods and services despite being or
-
,
