ECON 1200 1st Edition Lecture 2Current LectureCHAPTER 1: FOUNDATIONS AND MODELS (CONT.)- Household- Refers to all individuals occupying a home- Firm- A company that produces goods and services- Goods- Tangible merchandise- Services- Goods “done” for othersCHAPTER 2: TRADEOFFS, COMPARATIVE ADVANTAGE, & MARKETS- Tradeoff- The idea that producing more of 1 good means producing less of another good due to scarcityo Ex) Country A produces 2 goods, tables and chairs. If Country A wants to produce more tables, then they have to give up the production of some chairs.- Production Possibilities Frontier (PPF)- A curve showing the maximum attainable combinations of 2 products that may be produced with available resources and current technologyo Used to analyze the tradeoffs and opportunity costs that individuals, firms, and countries face when deciding how to use their scarce resourceso Any point on the curve is attainable and means that the firm is using their resources efficiently Points outside the PPF curve are unattainable due to scarcity Points inside the PPF curve are attainable, but mean the firm is under-producing because some goods are not being usedThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute. Not attainable Attainable, but inefficientAttainable and
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