1. SCARCITY, PRODUCTION POSSIBILITY, OPPORTUNITY COST Chapter #1 EDWARD BAHAW - Economic Principles and Their Application to Business (ABE)
2. Goods & Services and Consumer Needs Goods and services refer to the products which consumers consume to satisfy their needs and wants. Consumers have basic economic needs which include food, clothing and shelter. EDWARD BAHAW - Economic Principles and Their Application to Business (ABE)
3. Consumer Wants and Desires In addition to basic needs, consumers have wants and desires for luxury cars, to eat exotic meals, to wear expensive jewelry, to spend vacation in a fancy resort. EDWARD BAHAW - Economic Principles and Their Application to Business (ABE)
4. Resources or Factors of Production EDWARD BAHAW - Economic Principles and Their Application to Business (ABE)
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10. SCARCITY EDWARD BAHAW - Economic Principles and Their Application to Business (ABE) Unlimited Wants & Needs Finite Resources
11. The Production Possibility Curve In table a production possibility schedule is given for a hypothetical economy which shows all combinations of Good X and Good Y which can be produced. EDWARD BAHAW - Economic Principles and Their Application to Business (ABE) Possibility Commodity Y Commodity X A 14 0 B 12 10 C 9 18 D 5 25 E 0 30
12. G . U. A B C D E 5 9 12 14 18 10 25 30 X Y O The Production Possibility Frontier EDWARD BAHAW - Economic Principles and Their Application to Business (ABE)
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14. G U. A B C D E Y O A’ X E’ A Rightward Shift of the Production Possibility Frontier EDWARD BAHAW - Economic Principles and Their Application to Business (ABE)
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19. Opportunity Cost What should I purchase? I can choose either an audio CD or a T shirt! EDWARD BAHAW - Economic Principles and Their Application to Business (ABE)
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22. Free Market Economy EDWARD BAHAW - Economic Principles and Their Application to Business (ABE) The Three Basic Economic Questions The People Decides the Answers
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25. Command Economy Basic Economic Questions The non democratic government (dictator) decides the answers EDWARD BAHAW - Economic Principles and Their Application to Business (ABE)
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28. Mixed Economy Basic Economic Questions The government decides some of the answers EDWARD BAHAW - Economic Principles and Their Application to Business (ABE)
