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David Begg, Stanley Fischer and Rudiger Dornbusch, Economics, 8th Edition, McGraw-Hill Education, 2005 PowerPoint presentation by Alex Tackie and Damian Ward
Chapter 1
What is Economics?
ECONOMICS ... is the study of how society decides:
What For whom How
to produce...
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19 65 19 70 19 75 19 80 19 85 19 90 19 95 20 00
How to produce
less oil-intensive techniques
GNP
The production possibility frontier (1) For each level of the output of one good, the production possibility frontier shows the maximum amount of the other good that can be produced.
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F= 4
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G = 8
B
Production possibility frontier Film output (G)
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Resource allocation
Resource allocation is crucial for a society and is handled in different ways in different societies, e.g.: Command economy Mixed economy Free market
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The McGraw-Hill Companies, 2005
Market orientation
China Cuba Hungary Sweden UK USA
Command economy
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