Chapter 2 Economizing Scarce Resources
Macro Test Review 1
Macro Test Review 2
Macro Test Review 3
Micro Test Review 1
Micro Test Review 2
Micro Test Review 3
I. The Factors of Production
Land: Rent, Labor: Wages, Capital: Interest, Enterprise: Profit 2 Videos
II. The Production Possibility Frontier (Curve) Measures trade off when producing two types of goods. Static or Dynamic 2 Video
III. Opportunity Costs The cost of A measured in terms of what must be foregone of B. 2 Videos
IV. Law of Increasing Opportunity Costs Having additional units of A requires giving up more and more of B. 2 Videos
An entrepreneur risks their own resources to
make a profit while an intrapreneur has
|II. The Production Possibility Frontier (Curve)|
A. Measures trade off when
producing two types of goods.
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
|Chapter 2 Class Discussion Questions|
|Chapter 2 Homework Questions|
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|Economics Internet Library|