Table of Contents
What are the assumptions of the production possibility curve?
The basic assumptions of production possibility curve are:
- The resources are given and remain constant.
- The technology used in the production process remains constant.
- The resources and technology are fully and efficiently utilized.
- The technique of production remains constant.
What does point B represent?
all of the above. On the production possibility frontier shown below, point “B” represents. This is a PPF curve that has baseballs on the vertical axis and bananas on the horizontal axis. The maximum baseballs is 200, the maximum bananas is 400 with the PPF connecting both maximums with a bowed-out curve.
What are the 4 basic questions of economics?
The four basic economic questions are (1) what goods and services and how much of each to produce, (2) how to produce, (3) for whom to produce, and (4) who owns and controls the factors of production. In a capitalist economy, the first question is answered by consumers as they spend their money.
What are the 2 big economic questions?
Two Big Economic Questions Two big questions summarize the scope of economics: How do choices end up determining what, how, and for whom goods and services get produced? When do choices made in the pursuit of self-interest also promote the social interest?
What are at least 3 of the 5 questions of economics?
Because of scarcity every society or economic system must answer these three (3) basic questions:
- What to produce? ➢ What should be produced in a world with limited resources?
- How to produce? ➢ What resources should be used?
- Who consumes what is produced? ➢ Who acquires the product?
Who is the father of economics?
Early Life Of Adam Smith
What are the 3 economic systems?
This module introduces the three major economic systems: command, market, and mixed. We’ll also discuss the characteristics and management implications of each system, such as the role of government or a ruler/ruling party.
What is the basic rule of economics?
SEVEN ECONOMIC RULES: A set of seven fundamental notions that reflect the study of economics and how the economy operates. They are: (1) scarcity, (2) subjectivity, (3) inequality, (4) competition, (5) imperfection, (6) ignorance, and (7) complexity. The value of goods and services is subjective.
What are the 10 rules of economics?
The 10 Fundamental Principles of Economics:
- People respond to incentives.
- People face trade offs.
- Rational people think within the margin.
- Free trade is perceived mutual benefit.
- The invisible hand allows for indirect trade.
- Coercion magnifies market inefficiency.
- Capital magnifies market efficiency.
- Supply and demand magnify resource efficiency.
What are the 5 economic principles?
There are five fundamental principles of economics that every introductory economics begins with at the start of the semester: rationality, costs, benefits, incentives, and marginal analysis.