ECONOMIC ISSUE

ECONOMIC ISSUE

1. PRODUCTION POSIBILITIES AND OPORTUNITY EXPENSES

   • BPP PRODUCTION POSIBILITIES BOUNDARIES
     • Limits between facilities and asset' combinations
       • Which means
   • EFFICIENT PRODUCTION
     • produce assets and services at the lowest cost
       • It reffers to
   • TRADING ALONG THE BPP
     • An expense is generated: An Oportunity Expense
       • as a result
   • OPORTUNITY EXPENSE
     • PROPORTION
       • Number of asset produced decreasing, divided between the number of another asset produced increasing
         • Which means
     • DECREASING
       • It is reflected on the BPP shape: which is Covex
         • that
       • has two aspects

2. TRADE'S PROFITS

   • COMPARATIVE ADVANTAGE AND ABSOLUTE ADVANTAGE
     • COMPARATIVE ADVANTAGE
       • ABSOLUTE ADVANTAGE
         • Implies to compare the oportunity cost
           • which means
         • on the other hand
       • to compare productivity (production per hour)
         • Implies
   • HOW TO OBTAIN BENEFITS FROM TRADE
   • DYNAMIC COMPARATIVE ADVANTAGE
     • Practical learning: It is the dynamic comparative advantage's core
       • It is the comparative advantage of either a person or a country. It is the result of having specialized on an specific activity
         • Becoming the producer with the lowest oportunity cost
           • thus
         • additionally
     • It talks about the
   • 3 main facts are taken ito accoun

3. ECONOMIC COORDINATION

   • 1. COMPANIES
     • 2. MARKET
       • 3 OWNERSHIP RIGHTS
         • 4. MONEY
           • 5. CIRCULAR FLOWS THROUGHOUT MARKETS
             • 6. CHOISES COORDINATION
               • Decitions are coordinated by markets through prices'adjustments
               • it reffers to
           • Any accepted merchandise or tool on a generalized manner as payment mean
             • known as
         • Social agreements that govern property, use and the provision of anything that people value
         • It is mean to be understood as a
       • Agreement that allows both buyers and seller to obtain any goods and services information to make bussines one another.
       • It means
     • Economic unit that hires and organices production factors, in order to sell goods and services
     • 6 components are articulated
     • It is the

4. MEANS EFFICIENT USAGE

   • THE BPP AND THE MARGINAL COST
     • PREFERENCES AND BENEFITS OR MARGINAL PROFIT
       • ALLOWANCE EFFICIENCY
         • Consequently, it fosters
       • Preferences: Represents the description of what each one likes or dislikes
       • Marginal Profit : It is obtained from an extra unit consumption of the same one.
       • Marginal profit curve: Relation between an asset's marginal profit its consumed quantity
       • It also includes
       • They work together
     • the oportunity cost of produce another unit from the same one
       • Which means
     • It envolves

5. ECONOMIC GROWTH

   • ECONOMIC GROWTH COST
     • TECHNOLOGIC CHANGE
       • New assets and better mechanisms developement
         • they mean
     • CAPITAL ACCUMULATION
       • It is the capital's resources growth
   • NATION'S ECONOMIC GROWTH
   • it is compound by