Title: Production Possiblilties Curve; Rational Decision Making ; and Specialization
- It tells you the combintatin of two commodities (goods, products) that can be produced efficiently with a society's available resources.It also respersents the point at which an economy in the best way possible.
- When the PPC shifts outwards there is growth in the economy_________________
- The best way to determine weather the ecomony is rational economic is
- By using specialalization, a country can produced the thing that it can do rest, rather than diving up its resources.If countries trades are goods that they produce for other goods in which they don't have a compartive advantage both countries will be able to enjoy both products at lower opportunity cost.
How do i feel about the knowledge of this standard ?
I feel that this standard helps me with my understanding of the graphs and how business work usin PPC graghs it's a BIG help on undersatnding how the graph ad the capitial goods work to together in the ggraph to show how the opportunity cost could increase or decrease..
Questions????
1.
Thank you for your post Qunesha...but I'm not really sure if you fully understand the content. If the PPC shifts outward that means that the company is growing due to an investment in capital goods--like increased technology, more workers, etc.
ReplyDeleteAlso, a rational decision is a decision where the benefits of that decision outweigh the costs of that decision. Ex. say you want to go on a date with your BF...Your mom has told you that if you go you will be grounded...but you go anyway...BECAUSE the benefit of spending time with your BF is worth more to you than being grounded--that's what we mean when we say that the marginal benefits exceed the marginal costs. Let me know if you still are not clear on this principle. Also, correct your typos in the specialization post...because it says..rest..instead of 'best'...and diving...instead of dividing...Please remember to include the questions to maximum the grade you receive on your posts. Thank you for your efforts and for helping others to set up their blog...You are a jewel! Don't forget to attend tutorial by 8/26/2010...
Ms. McCray