bussiness economic

Powerful Essays
Topics: Economics
SCARCITY, CHOICE AND THE PRODUCTION POSSIBILITIES FRONTIER (CORE)






Scarcity, Choice and the Production Possibilities Frontier o The Economic Problem of Scarcity o Choice o Opportunity Cost
Production
o Introduction to Production o The Factors of Production
The Production Possibilities Frontier o Introduction to Production Possibilities Frontier (PPF) o Assumptions of the Production Possibilities Frontier o Characteristics of the Production Possibilities Frontier(Summary)

The Economic Problem of Scarcity
The fundamental problem of economics is that we have unlimited wants, but limited resources to satisfy these wants. When wants exceed the resources available we have scarcity.Scarcity occurs because human wants exceed the limits of available resources. Economics deals with the basic fact that scarcity exists in our everyday lives and in our economy. Resources such as raw materials are in finite supply and must be allocated to their best use. Virtually all resources are scarce, meaning that more of them are desired than is available. Economics is concerned with the way people have to make choices in order to overcome the problems of scarcity.
Choice
Given the presence of scarcity, choices must be made as to how resources are allocated. Our lives are filled with a wide range of choices regarding the use of limited personal funds. Advertisers constantly inform consumers of their consumption possibilities and the choices available. The same principle applies for the economy as a whole. We elect politicians who work with policy makers to allocate government expenditures. Together they make difficult choices concerning how taxes will be spent.
Opportunity Cost
The relevant cost of any decision is its opportunity cost - the value of the next-best alternative that is given up. This will mean that if we choose more of one thing, we will have to have less of something else.

Economists use the term opportunity cost to explain

You May Also Find These Documents Helpful

  • Powerful Essays

    Bussiness Economics

    • 2979 Words
    • 12 Pages

    Meaning Scope Features Uses Limitations Post : Gaurav Akrani Date : 11/10/2010 08:36:00 PM IST No Comments Labels : Economics, Study Notes Study of Economics - Micro & Macro Economics The study of economics is divided by the modern economists into two parts viz. Micro economics and Macro economics. This division is shown in the figure / chart above. Micro economics and Macro economics, both the terms were used in 1933 by Prof. Ragnar Frisch from Oslo University of Norway. The word micro has been…

    • 2979 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    Bussiness

    • 1566 Words
    • 7 Pages

    Bussiness Operations Simulation CEO s’ summary 1. What is the CEO? The highest ranking executive in a company whose main responsibilities include developing and implementing high-level strategies, making major corporate decisions, managing the overall operations and resources of a company, and acting as the main point of communication between the board of directors and the corporate operations. The chief executive officer (CEO) position is highly competitive, as it…

    • 1566 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    bussiness

    • 10651 Words
    • 43 Pages

    UNIVERSITY COLLEGE DUBLIN NATIONAL UNIVERSITY OF IRELAND, DUBLIN Bachelor of Science (Sri Lanka) INTERNATIONAL BUSINESS (BMGT2002L) STUDY GUIDE BSc17PT / Sri Lanka (Copyright © December 2013) Author: Dr. John F. Cassidy (2013) Dr Elena Sannikova (2013) This manual was prepared for University College Dublin as a comprehensive support for those studying for the Bachelor of Science (BSc) Degree. © University College Dublin, 2013 This…

    • 10651 Words
    • 43 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Bussiness

    • 748 Words
    • 3 Pages

    Internship Report On “Investment and Foreign Exchange Operation of IBBL” Prepared for: Mohammad Saddam Lecturer of Business Administration Eastern University Prepared by: Md. Mehadi Hasan ID: 071200043 Department of Business Administration Eastern University Submission Date: 3 April, 2011 STUDENT DECLARATION I hereby declare that the internship report entitled “Investment and Foreign…

    • 748 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Bussiness

    • 490 Words
    • 2 Pages

    Privatisation of business activities. The transfer or selling of state owned assets to the private sector or owners have brought an added advantage to several entrepreneurs within different industries. Governments reduce the level of competition between the private and public owned businesses by removing or reducing statutory restrictions (Sheshinski and López-Calva, 2010). This has since been implemented by governments after the initiative by the international finance community. The community pushed…

    • 490 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Bussiness

    • 24501 Words
    • 99 Pages

    MT KENYA UNIVERSITY DEPARTMENT OF FINANCE & ACCOUNTING P.O. Box 342 THIKA, KENYA Email: info@mku.ac.ke Web: www.mku.ac.ke Course code: DBF 121 Course Title: Banking Laws and Practice Instructional materials for distance learning students CONTENTS CONTENTS ........................................................................................................................ ii COURSE OUTLINE ................................................................................................…

    • 24501 Words
    • 99 Pages
    Powerful Essays
  • Good Essays

    Bussiness

    • 955 Words
    • 4 Pages

    reference是harvard style Food20003 Assignment In Australia, when a change to the food laws, food additives or novel ingredients is required, a submission is made to the government regulatory authority, Food Standards Australia and New Zealand (FSANZ). This submission generally comprises of a review of the literature, giving the background to this change, comparing this change with the situation in other countries, and reviewing the literature for possible adverse affects on humans. Submissions…

    • 955 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Bussiness

    • 876 Words
    • 4 Pages

    internal environment of the company are very interesting to be known by the public. Especially the new comers, who are new in the business of wholesaling or any market scope in Malaysian. Such of the macro was social culture, political forces, economics, and technology. In the micro they are coming with other stakeholders, customers, competitors, suppliers and intermediaries . However, in the internal environment will come out with the production, research and development, marketing, financial,…

    • 876 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Bussiness Cases

    • 3675 Words
    • 15 Pages

    PART “A” 1) Pick an organization with which you are familiar. it can be an organization in which you have worked or one that you interact as a customer or one you have searched on the web. For this organization answer the following questions: a) Write a brief summary of the organization´s operations (industry, products, country, etc) Inditex is one of the world's largest fashion retailers, welcoming shoppers at its eight store formats -Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho…

    • 3675 Words
    • 15 Pages
    Good Essays
  • Powerful Essays

    Internationl Bussiness

    • 2670 Words
    • 11 Pages

    Can Knockoffs Knock Out Your Business? Authors: Nunes, Paul F.1 paul.f.nunes@accenture.com Mulani, Narendra P.2 narendra.p.mulani@accenture.com Brandazza, Giorgio3,4 giorgio.brandazza@sdabocconi.it Taggart, J. Merrick "Rick"5 Cummings, Candace S.6 Source: Harvard Business Review; Oct2008, Vol. 86 Issue 10, p41-50, 8p, 2 illustrations Author Affiliations: 1 executive director of research, Global Institute for High Performance Business, Accenture, Boston 2 global managing director, Supply Chain Management…

    • 2670 Words
    • 11 Pages
    Powerful Essays