Scarcity, Trade-Offs, and Production Possibilities

• 2-1
• The Production Possibilities Curve
• 2-1a
• What Is a Production Possibilities Curve?
• 2-1b
• What Is Efficiency?
• 2-1c
• How Is Opportunity Cost Measured?
• 2-1d
• What Is the Law of Increasing Opportunity Costs?
• 2-2
• Economic Growth and the Production Possibilities Curve
• 2-2a
• How Do We Show Economic Growth on the Production Possibilities Curve?
• 2-2b
• How Can We Summarize the Production Possibilities Curve?
• 2-3
• Market Prices Coordinate Economic Activity
• 2-3a
• What Is a Market?
• 2-3b
• What Are the Roles of Buyers and Sellers in a Market?
• 2-3c
• How Does a Market System Allocate Scarce Resources?
• 2-3d
• What Is a Market Failure?
• 2-4
• The Circular Flow Model
• 2-4a
• What Are Product Markets?
• 2-4b
• What Are Factor Markets?
• 2-4c
• What Is the Goods and Services Flow?
• 2-4d
• What Is the Income Flow?