This chapter introduces comparative advantage and shows that having people specialize in the production in which they are relatively more efficient allows the production of more of everything. It introduces the production possibilities curve and develops the production possibilities model to show precisely how specialization enhances the productive capacity of an economy
MB MC Overview 1 a Chapter l introduces the concept of scarcity as applied in economics(also the No-Free-Lunch Principle). It presents the unavoidable fact that our needs and wants are unlimited and resources available to satisfy them are limited