BLAST FROM THE PAST
Production Possibilities Curve
| Resources are fixed over the time period.
| Calvin Webber builds a bomb shelter under the yard and stocks it with 35 years of supplies.
| People want more than what is available —insufficient resources, goods, or abilities to achieve the desired ends.
| 1. Adam wished he could meet a girl. 2. Helen Webber wants more liquor.
| productive of desired effects
| Calvin is building and furnishing a classroom from materials available to him.
| Contingent Behavior
| Decisions depend on the expectations of others.
Helen gave Adam a shopping list and $3,000 to buy enough things to get them through the next year or two, expecting the money is more than enough for the supplies.
| Opportunity Cost
| The cost of any activity measured in terms of the value of the next best alternative forgone
| 1. Adam asks Eve to take him to the Holiday Inn, in exchange for a baseball card, worth $4,000. 2. Eve takes Adam’s offer to work for her in exchange of baseball cards.
| Multiplier Effect
| The source of unintended consequence.A small initial change may result in a large final change.
Soda Jerk and ten of his followers stand up expectantly and anxiously. When Helen appears, they all fall down on their knees and worship her with much wailing and rejoicing. 2.
Soda Jerk became an archbishop. 3.
Calvin Webber is a genius while Helen Webber is a lovely dancer. They teach everything they know to Adam Webber. Adam became genius and a dancer.
| The total amount of a good or service available for purchase;
| 1. Helen shops for supplies in the large store room. 2. Adam takes home what he has bought for his family’s goods for the next years.
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