ECON 2000 1st Edition Lecture 3Outline of Last 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 Poema. Opportunity Costb. Scarcityc. Productive Efficiencyd. Marginale. Assumptionsf. TradeoffsXI. Production Possibilities Frontier (PPF)a. DefinitionOutline of Current Lecture XII. Class experimentA. text vs. Push upsB. Production Possibility FrontierCurrent LectureXII. Class experimenta. Text vs. Push upsi. Students were tested to see how many pushups and text messages they could do in a given set of timeTime Pushups Text30 seconds/ 0 Seconds 66 020 seconds/ 10 seconds 51 7These 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.10 seconds/ 20 seconds 25 100 seconds/ 30 seconds 0 12b. Production Possibility Frontier0 2 4 6 8 10 12 14010203040506070Country A's PPFText MessagesPushups0 2 4 6 8 10 12 14010203040506070Country A's PPFText MessagesPushupsi. Combinations can only be INSIDE or ON the PPF1. Inside PPF = Not fully utilizing resources2. On PPF= Fully utilizing resource and being productively efficient3. Outside PPF= not currently obtainablea. Needs economic growth and more resources. Like:i. Improve quality of existing resources (practice)Inside PPFii. Increase amount of economic resource (add more workers)iii. Relax institutional restraints (govtenvolvement)iv. Trade: allows nations to consume unobtainable combinations (not necessarily
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