Econ 2000 1st Edition Lecture 2Outline of Last Lecture I. Introduction to Economicsa. EconomicsII. Scarcitya. Definitionb. Factors of Productionc. ExamplesIII. Efficiencya. Productive Efficiencyb. Allocative EfficiencyIV. 3 Questions that efficiency and scarcity forces every society to ask:a. What to produceb. How to produce c. Whom to produce for V. Three types of Economic playersa. Individualb. Business/ Firmsc. GovernmentVI. Assumptionsa. Way Economic Players ActVII. Opportunity Costa. Definitionb. ExampleVIII. Review and Real World ExamplesOutline of Current Lecture IX. 50 Billion Dollar Econ Problem Solvinga. If economist were given 50 Billion dollars to save the world problems they would spend it on: b. These are two options. IF they chose one they face opportunity costsX. Economics in Robert Frost’s Poemc. Opportunity CostThese 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.d. Scarcitye. Productive Efficiencyf. Marginalg. Assumptionsh. TradeoffsXI. Production Possibilities Frontier (PPF)i. DefinitionCurrent LectureIX. 50 Billion Dollar Econ Problem Solvinga. If economist were given 50 Billion dollars to save the world problems they would spend it on: i. Provision of Food1. Less crime2. Basic needs are met3. Gives opportunity to obtain education and focus4. Immediate impactii. Primary Education1. Long term impact2. Problems will be solved3. Able to obtain employment4. Decreases unwanted pregnancyb. These are two options. IF they chose one they face opportunity costsi. The opportunity cost of choosing to use the money on primary education is not being able to meet the basic needs of people.X. Economics in Robert Frost’s Poema. Opportunity Costi. The road traveled on vs. less traveled onb. Scarcityi. Time1. The man only has time to go down one road.c. Productive Efficiencyi. He cannot go down both paths because of time constraints. He is fully utilizing his time = productivity at its finestd. Marginali. He discusses if he had EXTRA time, he could go down both. 1. Extra= marginale. Assumptionsi. He states “perhaps he chose the best path”f. Tradeoffsi. He picked one and sacrificed the otherXI. Production Possibilities Frontier (PPF)a. Definitioni. A model that illustrates maximum production combinations that a nation can produce given the nation’s stock of economic resources, the quality ofany institutional constraint
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