resolving scarcity

resolving scarcity

1. all about allocation of a nations scrce rsorces

2. basic eo problm

   • wht 2 prod
   • 4 who 2 prod.
   • how 2 prod.

3. oppurtunity cost

   • value of next best alternative
   • shown on ppc
     • diifent combination of 2 products an economy van prod. if all rsources r used up
     • trade offs = change in capital/consumer gds
     • consumr gsd= prchsed by households e.g food
     • captl gds= prchsed by firms and used 2 prod. othr gds e.g machinery/cars

4. ovr timme ppcs rise

   • become more efficient
   • economic growth
     • q. of population
     • q. of labour