Hello Kids! So,are you all here to learn? Good! Today, we will all be learning about Economy!
Scarcity vs Shortage Scarcity - Occurs when there are limited quantities of resources to meet needs of people. Shortage - Occurs when there are limited products a producer made
Things that affect production is land, labor, human capital, and physical capital
Opportunity costs - Desirable alternative given up Pro-con lists - Helps you find the pros and cons of a given topic Decision making grids - helps you make decisions Thinking at the margin - when you decide how much more or less to do
A production possibility graph can also show the cost of something, whether it´s efficient or if its grown.
All of this can go into a production possibility graph and frontier!