CH. 2 econ outline
Subject:
Economics [1]
Tags:
A model in econ -a simplified rep to understand real situations use to study effect of once chance with others same other things equal assumption all other factors stay same hard to create small scale and program thought experiment is most usful real life hypothetical ? cashier lanes models PPF Simp econ pruduce two goods Illustrate efficiency No make better without worse off No produce more without produce less of another Opp cost increase When small amount, use well suited resources Start using more less suited so have to use more, which means less another Econ growth Grow ability to produce goods Comparative Comparative advantage Lower op cost in production than others As long as diff opp cost, there are comp adv Abs advantage