An overview of how can the PPF model help to explain the issues of choice, opportunity cost, growth and unemployment.
Title: An overview of how can the PPF model help to explain the issues of choice, opportunity cost, growth and unemployment.
Category: /Social Sciences/Education
Details: Words: 609 | Pages: 2 (approximately 235 words/page)
An overview of how can the PPF model help to explain the issues of choice, opportunity cost, growth and unemployment.
Category: /Social Sciences/Education
Details: Words: 609 | Pages: 2 (approximately 235 words/page)
Economics is less about money, then it is about resource management. That is how to satisfy unlimited wants, with scant resources.
The question of how to satisfy unlimited wants with limited resources, is one that effects a multitude of people including individuals, firms and governments. A very important concept that needs to be understood, in order to effectively answer this question, is that of opportunity cost.
Opportunity cost, is often referred to as the "real" …showed first 75 words of 609 total…
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…showed last 75 words of 609 total…model is thought to be one of the economists most useful tools.
So in conclusion, the question of dealing with unlimited wants, with limited resources, is one that can never fully be answered by economics, however it is something that economics can help us to understand and help us with. To fully help us understand however, the economist use tools like the PPF, in order that we fully understand the variety of issues around this.
