Economic Problem

Economic Problem

1. Possibility of production and opportunity cost

   • PPF
     • Limit of goods an services
       • More production of goods
         • increase of production
         • Increased cost
       • Accessible and inaccessible
         • When resources available using their capacity
     • Efficiency
       • Allocation
       • Resources
         • - Costs + Benefits
       • Production
         • It is achieved producing goods and services at the lowest cost possible
           • It may be inefficient when resources unused
     • Cost
       • Oportunities
         • Alternative higher value who sacrifices
       • Economic Grow

2. Efficient use of resources

   • It is when a good is produced at lowest possible price
     • Marginal cost
       • It is when It produces one unit
     • Marginal benefits
       • That advantage received by the Consuming a like unit
       • Decreases as the amount increases

3. Economic growth

   • It is when the possibility of production
     • Opportunity cost
       • Current consumption
     • Profit growth
       • Increased future consumption
   • Results
     • Technological change
       • Development of new goods
       • Better ways of producing goods and services
     • Capital accumulation
       • Increased capital resources

4. Trading profit

   • People or companies
     • Gets comparative advantages
       • The cost of production is lower than others
     • It specializes in activity
       • Comparative advantage
       • Cost sharing
   • Advantages
     • Comparative
       • Ability to do something at a lower cost than others
     • Absolute
       • Comparison of productivity levels

5. Economic coordination

   • It coordinates activities according to company size
   • Property rights
     • Efficient production
     • Adaptation to the environment
   • Economic choice
     • People
     • Companies
   • Money Management
     • Exchange market