the economic problem - test bank...
TRANSCRIPT
T h e B i g P i c t u r e
Where we have been:
Where we are going:
W h a t ’ s N e w t o t h e E i g h t h E d i t i o n
THE ECONOMIC PROBLEM
Copyright © 2013 Pearson Canada Inc. 1
Full file at http://testbank360.eu/solution-manual-microeconomics-8th-edition-parkin
2 C H A P T E R 2
L e c t u r e N o t e s
The Economic Problem
I. Production Possibilities Frontier and Opportunity Cost
production possibilities frontier
Production Efficiency
production efficiency
Tradeoff Along the PPF
Copyright © 2013 Pearson Canada Inc. 2
Full file at http://testbank360.eu/solution-manual-microeconomics-8th-edition-parkin
T H E E C O N O M I C P R O B L E M 3
Opportunity Cost
opportunity cost
Increasing Opportunity Costs
Copyright © 2013 Pearson Canada Inc. 3
Full file at http://testbank360.eu/solution-manual-microeconomics-8th-edition-parkin
4 C H A P T E R 2
II. Using Resources Efficiently
The PPF and Marginal Cost
Marginal cost
Preferences and Marginal Benefit
Preferences
marginal benefit
marginal benefit curve
Efficient Use of Resources
Allocative efficiency
Copyright © 2013 Pearson Canada Inc. 4
Full file at http://testbank360.eu/solution-manual-microeconomics-8th-edition-parkin
T H E E C O N O M I C P R O B L E M 5
III. Economic Growth
Economic growth
Technological change
capital accumulation
The Cost of Economic Growth
A Country’s Economic Growth
IV. Gains from Trade
Comparative Advantage
comparative advantage
absolute advantage
Copyright © 2013 Pearson Canada Inc. 5
Full file at http://testbank360.eu/solution-manual-microeconomics-8th-edition-parkin
6 C H A P T E R 2
Achieving the Gains from Trade
V. Economic Coordination
Firms and Markets
firm
market
Property Rights and Money
property rights
Copyright © 2013 Pearson Canada Inc. 6
Full file at http://testbank360.eu/solution-manual-microeconomics-8th-edition-parkin
T H E E C O N O M I C P R O B L E M 7
Circular Flows through Markets
Coordinating Decisions
Copyright © 2013 Pearson Canada Inc. 7
Full file at http://testbank360.eu/solution-manual-microeconomics-8th-edition-parkin
8 C H A P T E R 2
A d d i t i o n a l D i s c u s s i o n Q u e s t i o n s
Recreation
(hours per
day)
Marginal cost
(GPA points per
hour)
0.5 0.1
1.5 0.2
2.5 0.3
3.5 0.4
4.5 0.5
5.5 0.6
6.5 0.7
7.5 0.8
Copyright © 2013 Pearson Canada Inc. 8
Full file at http://testbank360.eu/solution-manual-microeconomics-8th-edition-parkin
T H E E C O N O M I C P R O B L E M 9
Recreation
(hours per
day)
Willingness
to pay
(GPA points per
hour)
0.5 0.7
1.5 0.6
2.5 0.5
3.5 0.4
4.5 0.3
5.5 0.2
6.5 0.1
7.5 0
Copyright © 2013 Pearson Canada Inc. 9
Full file at http://testbank360.eu/solution-manual-microeconomics-8th-edition-parkin