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HOMOGENEOUS GOOD: Goods that are either physically identical or at least viewed as identical by buyers. In particular, the producer of a good can not be identified from the good itself. This is a key assumption underlying the perfect competition market structure, and like other assumptions is only approximated in the real world. Agricultural products, metals, and energy goods come as close as any in the real world.
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Lesson 4: Production Possibilities | Unit 5: Investment
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Page: 22 of 24
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Topic:
Bundle Choices: I
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Now with bundle I (270 jogging shoes and 8 calibrators).- Producing 8 calibrators has added even more to the economy's capital.
- The cost of these 8 calibrators is 180 pairs of shoes compared to A, and the extra 4 calibrators compared to bundle E is 140 pairs of shoes.
- These 8 calibrators have increased the quantity of resources even more than bundle E, leading to an even greater shift of production possibilities curve.
- Tomorrow's production possibilities curve is even farther out than today's curve. There is more growth and a bigger shift in the curve.
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LIMITED RESOURCES A basic condition of nature which means that the quantities of available labor, capital, land and entrepreneurship used for the production of goods and services are finite. It means that the economy has only so many resources that can be used AT ANY GIVEN TIME time to produce goods and services. Limited resources are one half of the fundamental problem of scarcity that has plagued humanity since the beginning of time. The other half of the scarcity problem is unlimited wants and needs.
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The 1909 Lincoln penny was the first U.S. coin with the likeness of a U.S. President.
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"If a man hasn't discovered something that he will die for, he isn't fit to live. " -- Martin Luther King Jr., clergyman
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NCUA
National Credit Union Administration
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