ECSENOMICS Chapter 1 The Fundamentals of economics McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 1 The Fundamentals of Economics
ECSENOMICS The Production possibilities ph In a grap 1-1 Figure 1-1 15 B C 9 3 Butter(millions of pounds) McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. T-1 Figure 1-1 The Production Possibilities in a Graph
ECSENOMICS A Smooth Curve connects the plotted points to of the Numerical Production Possibilities -2 Figure 1-2 The Production-Possibility Frontier 9 6 B Butter(millions of pounds) McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. A Smooth Curve Connects the Plotted Points of the Numerical Production Possibilities T-2 Figure 1-2
ECSENOMICS Economic growth Shifts the pPF outward T-3 Figure 1-3 (a) Poor Nation (b) High-Income Nation 9t F Necessities(food, ,. Necessities(food,,.) McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Economic Growth Shifts the PPF Outward T-3 Figure 1-3
ECSENOMICS Economies must Choose between 8 Public Goods and Private Goods 14 Figure 1-4 (a) Frontier Society (b) Urban Society Private goods( food....) Private goods(food .. McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Economies Must Choose Between Public Goods and Private Goods T-4 Figure 1-4
ECSENOMICS Investment for Future Consumption Requires Sacrificing Current Consumption 1-5 Figure 1-5 (a) Before Investment (b) Afler Investment B C Current consumption Future consumption McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Investment for Future Consumption Requires Sacrificing Current Consumption T-5 Figure 1-5
