FrontPage: Have PPC sheet on your desk.
Best Tip Ever
Best Pet Halloween Costume
Ever
Last Word: Reviewing Key Concepts due tomorrow;
Ch 1 quiz tomorrow
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
All things are equal
Resources are fixed
All resources are fully used
 Only two things can be produced
 Technology is fixed



What could actually cause a “shift” in the PPC – to the
right (“out”)?


To the left (“in”)?


Laptops and LCD TVs?
Steel and Food?
What about if changes occur for only one good?

Milk
 Why
is the opportunity cost of doing one
more thing instead of the other NOT always a
consistent number in a PPC?

https://www.khanacademy.org/economics-financedomain/microeconomics/choices-opp-cost-tutorial/productionpossibilities/v/increasing-opportunity-cost
Chapter 1, Section 4
 Macroeconomics
– study of the economy as a
whole, includes topics like inflation,
(aggregate) demand, and (aggregate) supply
 Microeconomics
– the study of the individual
players in the economy, such as individuals,
families and businesses
 Positive
Economics - involves describing
economics as it is, NOT as it should be
 Normative
Economics - involves describing
economics as it SHOULD BE, not as it is

2 of the most well-known and important
economic thinkers of all time…

We’ll get to Marx, but…

Adam Smith –
Founder of the study of economics
 “father of modern capitalism”
 Wrote The Wealth of Nations
 Theorized the “invisible hand” of the market
