Biology Ia

Introduction of Theory: The Production Possibilities frontier is a valuable, unproblematic tool for evaluating the overall productive capacity of an parsimoniousness. Connection to denomination: In the current state of California, standard insurance policy does non cover motherliness cargon for pregnant women. State police force makers have recently began considering the price of premiums to cover the cost of maternity care as a standard for all insurance policies. Y Consumer Goods B Capital Goods X A Graph One Analysis: The Production Possibilities frontier is a represent which shows the maximum number of goods and services that can be set offd by an economy in a given prison term period, if all resources in the economy are being apply fully and efficiently and the state of technology is fixed (Blink, 11). From this graph four things can be observed: scarcity, efficiency, growth, and opportunity cost. scarceness is a product of infinite wants and limited goods and services, resulting in choices as people decide how to allocate their financial resources among alternatives. With current resources, solitary(prenominal) a certain amount of consumer and capital goods are possible.

Consumer goods extend to to the goods bought directly by the consumer, and capital goods refer to the goods used in the production of consumer goods; such as machinery or labor. Efficiency refers to how the economy actually operates. Represented by point B, an economy whitethorn not be using its resources as effectively as possible. Economic growth refers to an increase in economic activity. The determinants of the PPF are the factors of production or the four resources which allow an economy to produce its output: land, labor, capital, and entrepreneurship. Because the factors of production are limited (scarce) choices must be made among alternatives producing opportunity cost. Opportunity cost is defined as the next best alternative foregone when an economic decision is made (Blink, 10). By choosing to operate at point A on the... If you want to get a full essay, launch it on our website: Orderessay

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