TAILIEUCHUNG - Lecture Macroeconomics (9/e): Chapter 2 - David C. Colander

Chapter 2: The production possibility model, trade, and globalization. After reading this chapter, you should be able to: Demonstrate trade-offs with a production possibility curve; relate the concepts of comparative advantage and efficiency to the production possibility curve; state how, through comparative advantage and trade, countries can consume beyond their individual production possibilities; explain how globalization is guided by the law of one price. | Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 1 Chapter Goals Relate the concepts of comparative advantage and efficiency to the production possibility curve Demonstrate trade-offs with a production possibility curve State how, through comparative advantage and trade, countries can consume beyond their individual production possibilities Explain how globalization is guided by the law of one price 2 The Production Possibilities Model An output is a result of an activity An input is what you put in a production process to achieve an output A production possibility table is a table that lists the trade-offs between two choices The production possibilities model can be presented both in a table and in a graph 3 The Production Possibilities Model It gives you a visual picture of the tradeoff embodied in a decision A PPC is created from a production possibility table by mapping the table in a two-dimensional graph A production possibility curve .

• Kinh tế học
• Lecture Macroeconomics
• Kinh tế vĩ mô
• Macroeconomic problems
• International macroeconomic policy issues
• Production possibility model
• Comparative advantage
• Bài giảng Kinh tế vĩ mô
• Science of macroeconomics
• Data of macroeconomics
• Unemployment rate
• Inflation rate
• Principles of microeconomics
• Economic models
• Tools of microeconomics
• Microeconomic transactions
• Natural rate of unemployment
• Consumer price index
• National income
• Agriculture sector
• Agricultural policies
• Economic fluctuations
• Macroeconomic policy
• Business cycle theory