Академический Документы
Профессиональный Документы
Культура Документы
In this Lecture
An Economys
Production Possibilities
Frontier
Increasing and Constant
Opportunity Costs
The Production
Possibilities Frontier and
Various Economic
Concepts
In this Lecture
Exchange or Trade
Transaction Costs
Comparative
Advantage and
Specialization
As more of a good
is produced, the
opportunity costs
of producing that
good increase
Productive Inefficiency
Advance in Technology
An advance in
technology commonly
refers to the ability to
produce more output
with a fixed amount
of resources or the
ability to produce the
same output with
fewer resources.
Exchange or Trade I
Exchange (Trade)
The process of giving up one thing for something else.
Terms of Trade
How much of one thing is given up for how much of
something else.
Transaction Costs
The costs associated with the time and effort needed to
search out, negotiate, and consummate and exchange.
Exchange or Trade II
Third Party Effects (persons not involved in the trade)
Costs - Negative effects of the trade
Benefits Positive effects of the trade
Comparative Advantage
The situation where someone can produce a good at
lower opportunity cost than someone else can.
Specialization
Producing goods in which you have a comparative
advantage
Ex Ante
Elizabeth and Brian Before the Trade
Ex Post
Next