Chapter 2 Economizing Scarce Resources
I. The factors of production
II. The Production Possibility Frontier (Curve) 1 Video
III. Opportunity Costs 2 Videos
IV. Law of Increasing Opportunity Costs 2 Videos
About 1-page per
Macro Test Review 1
Macro Test Review 2
Macro Test Review 3
About 1-2 pages per chapter
Micro Test Review 1
Micro Test Review 2
Micro Test Review 3
An entrepreneur risks their own resources to
make a profit while an intrapreneur has
|II. The Production Possibility Frontier (Curve)|
A. Measures how many of two types of goods can
1. The cost of A measured in terms of what must be foregone of B.
2. When considering doing A, we consider the highest valued
alternative as limited resources means we can't afford both.
3. For more information visit the Production Possibilities Curve from Wikipedia.
4. Politicians seldom talk of the opportunity cost of what they plan to do.
5. Opportunity Cost Video 5 min
a. The opportunity cost of good grades is the value which could have been
received by spending time with family and friends.
b. The opportunity costs of more capital goods is the value which could have been
received from having more consumer goods family and friends.
c. Opportunity Cost of College explores this example.
d. A Lesson in Opportunity Cost
e. The Guide to Country Profiles of the CIA World Factbook, 2007 Example
1. U.S. military spending was an about 4.06% of its 2005 GDP.
2. Here is a rank order of country percentages.
3. What are the opportunity costs of high military spending?
4. CIA, Latest "The World Factbook
Free Internet Libraries
Law of Increasing Opportunity Costs
Alternative Production Possibilities
with answers and
What are the opportunity costs of the
Eventually Increasing Opportunity Cost
|Chapter 2 Class Discussion Questions|
|Chapter 2 Homework Questions|
|Table of Contents|
|Economics Internet Library|