General Concepts 2 min read
Pareto efficiency
Any point on a PPF, such as points ‘A’ and ‘B’, is said to be efficient and indicates that an…
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General Concepts 1 min read
Interpreting PPFs
Firstly, we can describe the opportunity cost to Mythica of producing a given output of computers or textbooks. For example, If Mythica produces 3m…
General Concepts 1 min read
Production possibility frontiers
An opportunity cost will usually arise whenever an economic agent chooses between alternative ways of allocating scarce resources. The opportunity…
General Concepts 1 min read
Samuelson’s three questions
America’s first Nobel Prize winner for economics, the late Paul Samuelson, is often credited with providing the first clear and simple…
General Concepts 2 min read
Choice and opportunity cost
Choice and opportunity cost are two fundamental concepts in economics. Given that resources are limited, producers and consumers have to make choices between…
General Concepts 1 min read
The economic problem
All societies face the economic problem, which is the problem of how to make the best use of limited, or scarce,…
General Concepts 2 min read
The role of money in exchange
Money occupies a central role in market economies because it acts as a medium of exchange. The advent of money…
General Concepts 1 min read
Types of production
Production is undertaken by firms, also known as enterprises, or businesses. There are three stages of production: 1. Primary production, which involves the…
General Concepts 2 min read
Factors of production
Production involves the creation of goods and services by using scarce resources. Producers must exchange the income they earn for…
General Concepts 2 min read
Economic exchange
Economic behaviour involves the exchange of one scarce resource for another. When people engage in paid work, they exchange their…
