Econ 2030 Tuesday jan 17th, 2017
Quality of opportunity- everyone is starting at the starting line and has the same rules, after
that it is up to the individual and where they finish.
PPC– An economic model that illustrates max production ambitions that a nation can produce
given the nation’s current stock of economic resources and the institutional constraints
regarding the use of these resources
Three regions:
1. Inside (x)-not productively efficient, not a.e. recession.
2. On(f)- p.e. potentially a.e (need more info)
3. Outside(z)- not currently obtainable
Economic growth changes the entire PPC
ECON GROWTH:
1. Improve the quality of existing econ resources
2. Relax institutional constraints.
3. Increase the stock of current stock of economic resources
Concave PPC-
Law of increasing marginal opp cost holds.
Speculations of resources exist
Straight ppc- the law does not.