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This 1 page Class Notes was uploaded by Olivia Notetaker on Saturday January 9, 2016. The Class Notes belongs to Econ 150-21 at La Salle University taught by Dr. Mshomba in Fall 2016. Since its upload, it has received 75 views. For similar materials see Intro Macroeconomics in Economcs at La Salle University.
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Date Created: 01/09/16
Econ 150 Notes- Week One January 19 - To get something, you must give up another - Inflation- in general, prices go up (macroeconomics) - Macroeconomics- unemployment rate…in particular- microeconomics - Nomative economics- “what should be”; ought to be - Positive economics- “what is”; a fact; a statement of how things are - Opportunity cost= a thing that is given up; something forgone to get another - Production Possibilities Curve- everything below the curve is possible- we have the resources to make such combinations of whatever goods and services; since it is below the line, they show less total output and are less desirable than on the line. Everything above the curve is impossible, it would require more resources than our nation can offer. On the line is maximum effort, you can’t go beyond those resources/effort; the most possible is being made (STRIVE FOR THIS). - S= 20 + 10H (graph is an positive arrow increasing to the right) January 21 - 4 types of resources: land, labor, capital (machines, tools, buildings, etc.), entrepreneurship ability (take risks to produce something) - Production Possibilities Curve- resources are used at maximum with full employment and it’s efficient (need those two things) o Curve represents increasing opportunity cost - Example: machines- A 10, B 9, C 7, D 4, E 0; Food- A 0, B 1, C 2, D 3, E 4 o Increasing here; slope (rate of change) is a curve - Example: machines- A 10, B 7.5, C 5, D 2.5, E 0; Food- A 0, B 1, C 2, D 3, E 4 o Opportunity cost is constant here; curve is straight downward diagonal line - Send person with lowest opportunity cost to maximize production o The person best suited o As we produce more and more, you gotta lose more and more because they’re not all as good (resources are different) o Ex: want 1 ton wheat, 1 acre of best land, but want another ton, but only bad land left so you need 3 acres of that to get same result - And increase in resources causes curve to extend outward to the right (increase) - Government policies have an impact on the curve
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