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An overview of how can the PPF model help to explain the issues of choice, opportunity cost, growth and unemployment.
Economics is less about money, then it is about resource management. That is how to satisfy unlimited wants, with scant resources.
The question of how to satisfy unlimited wants with limited resources, is one that effects a multitude of people including individuals, firms and governments. A very important concept that needs to be understood, in order to effectively answer this question, is that of opportunity cost.
Opportunity cost, is often referred to as the "real" cost of things. That is, the cost of investing energy or resources into something, is the cost of not being able to spe…
- An overview of how can the PPF model help to explain the issues of choice, opportunity cost, growth and unemployment.
- How did the economic program of Alexander Hamilton help revitalize the American Economy?
- Macroeconomic Overview, February 1997
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