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    Economic Choices and Decision Making

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    Luna Ledezma
    This document discusses key concepts for understanding economic choices and decision making. It explains that the production possibilities frontier shows the combinations of goods and services an economy can produce when resources are fully employed, and that the frontier will shift outward when economic growth occurs due to factors like increasing population, capital, and productivity. It also defines opportunity cost as what is given up in a decision, and explains that cost-benefit analysis involves comparing costs and benefits, with benefits outweighing costs.

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    Economic Choices and Decision Making

    Uploaded by

    Luna Ledezma
    9 views13 pages
    This document discusses key concepts for understanding economic choices and decision making. It explains that the production possibilities frontier shows the combinations of goods and services an economy can produce when resources are fully employed, and that the frontier will shift outward when economic growth occurs due to factors like increasing population, capital, and productivity. It also defines opportunity cost as what is given up in a decision, and explains that cost-benefit analysis involves comparing costs and benefits, with benefits outweighing costs.

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    Economic Choices And Decision Making

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    This document discusses key concepts for understanding economic choices and decision making. It explains that the production possibilities frontier shows the combinations of goods and services an economy can produce when resources are fully employed, and that the frontier will shift outward when economic growth occurs due to factors like increasing population, capital, and productivity. It also defines opportunity cost as what is given up in a decision, and explains that cost-benefit analysis involves comparing costs and benefits, with benefits outweighing costs.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    9 views13 pages

    Economic Choices and Decision Making

    Uploaded by

    Luna Ledezma
    This document discusses key concepts for understanding economic choices and decision making. It explains that the production possibilities frontier shows the combinations of goods and services an economy can produce when resources are fully employed, and that the frontier will shift outward when economic growth occurs due to factors like increasing population, capital, and productivity. It also defines opportunity cost as what is given up in a decision, and explains that cost-benefit analysis involves comparing costs and benefits, with benefits outweighing costs.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 13

    Economic

    Choices And
    Decision Making
     Understand Costs/Benefits
     Understand the Production Possibilities
    Frontier and Trade Offs
     Understand causes of Economic Growth
    Trade Offs
     Alternative Choices to a Problem
    Opportunity Cost
     What is given up in a decision
    Cost-Benefit Analysis

     Comparing costs and benefits

     Benefits should outweigh


    costs
    Production
    Possibilities
    Frontier
    Gives various combinations of
    goods or services an economy
    can produce when all productive
    resources are fully employed
    Fully Employed
    Resources
     Point will be on the curve

     Business efficient
    Idle Resources
     Business not efficient

     Resources not fully employed

     Point inside the frontier


    Economic Growth
     Production frontier can change
    because of population, capital,
    and productivity

     The whole frontier can and will


    shift outward when growth occurs
    DO YOU KNOW?

     What the production possibilities frontiers


    looks like and shows us???

     Difference between idle and fully employed


    resources???

     What causes economic growth and what


    are the effects of it???

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