slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Scarcity, Trade-offs, Cost, and Opportunity Cost In Economics, Society, and Government PowerPoint Presentation
Download Presentation
Scarcity, Trade-offs, Cost, and Opportunity Cost In Economics, Society, and Government

Loading in 2 Seconds...

play fullscreen
1 / 12

Scarcity, Trade-offs, Cost, and Opportunity Cost In Economics, Society, and Government - PowerPoint PPT Presentation


  • 98 Views
  • Uploaded on

Scarcity, Trade-offs, Cost, and Opportunity Cost In Economics, Society, and Government. Define Economics- Scarcity- Trade offs- Cost- Opportunity Cost-. Constant Opportunity Cost. Constant Opportunity Cost. Pizza Calzones. Pizza. 10 9 8 7 6 5 4 3 2 1 0. 0 1 2 3 4 5 6

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Scarcity, Trade-offs, Cost, and Opportunity Cost In Economics, Society, and Government' - kermit-stevenson


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Scarcity, Trade-offs, Cost, and Opportunity Cost

In Economics, Society, and Government

slide2

Define

Economics-

Scarcity-

Trade offs-

Cost-

Opportunity Cost-

slide3

Constant Opportunity Cost

Constant Opportunity Cost

Pizza Calzones

Pizza

10

9

8

7

6

5

4

3

2

1

0

0

1

2

3

4

5

6

7

8

9

10

PPC 1

10

5

1

0

Calzones

1

5

10

The economy foregoes the same amount of one good when producing more of the other.

Not realistic for entire economy because different resources are better for the production of specific products. This can represent specific products that use the same resources.

slide4

Increasing Opportunity Cost

Increasing Opportunity Cost

Pizza Computers

Pizza

A

30

29

24

15

0

0

1

2

3

4

30

25

20

15

10

B

5

0

Computers

1

2

3

4

The value of a foregone product increases as the production of good increases. Specifically relates to the allocation of resources to their best purposes.

In this section the best resources at making computersare reallocated to computersand the best at making pizzas stay with pizza

A

By this point all resources are being allocated to the production of computers, even those resources that least productive at making robots and best at producing pizza.- Common occurrence in Command Economies.

B

slide5

Can Liberty vs. Authority be viewed in the same manner?

“In all governments, there is a perpetual struggle, open or secret, between Authority and Liberty; and neither of them can ever absolutely prevail in the contest. A great sacrifice of liberty must necessarily be made in every government; yet even the authority, which confines liberty, can never, and perhaps ought never, in any constitution, to become quite entire and uncontrollable.”

- David Hume

“The pursuit of one end necessarily entails opportunity costs in relation to other.”

- Isaiah Berlin British Political Theorist

slide6

Opportunity Cost of Liberty and Authority

100

80

Liberty-(% not directly impacted)

60

40

20

0

No Anti Obama speech (bumper stickers, blogs)

No Flag Burning

No questioning of the government

No Anti government speech

0

Authority – actions to increase in government power

slide7

Opportunity Cost of Liberty and Authority

Beware of the Slippery Slope!!!!!

100

80

Liberty-(% not directly impacted)

60

40

20

0

No Anti Obama bumper stickers or public speech

No Flag Burning

No questioning of the government

No Anti government speech public

0

Authority – actions to increase in government power

slide8

Define

Economics- The allocation of scarce resources that have alternative uses.

Scarcity- having unlimited wants and needs in a world with limited resources.

Trade offs- decision that involves giving up something to gain something else.

Cost- The value of a product’s alternative uses.

Opportunity Cost- most preferred alternative given up.

slide9

Constant Opportunity Cost

Constant Opportunity Cost

Pizza Calzones

Pizza

10

9

8

7

6

5

4

3

2

1

0

0

1

2

3

4

5

6

7

8

9

10

PPC 1

10

5

1

0

Calzones

1

5

10

The economy foregoes the same amount of one good when producing more of the other.

Not realistic for entire economy because different resources are better for the production of specific products. This can represent specific products that use the same resources.

slide10

Increasing Opportunity Cost

Increasing Opportunity Cost

Pizza Robots

Pizza

A

30

29

24

15

0

0

1

2

3

4

30

25

20

15

10

B

5

0

Robots

1

2

3

4

The value of a foregone product increases as the production of good increases. Specifically relates to the allocation of resources to their best purposes.

In this section the best resources at making robots are reallocated to robots and the best at making pizzas stay with pizza

A

By this point all resources are being allocated to the production of robots, even those resources that least productive at making robots and best at producing pizza.- Common occurrence in Command Economies.

B

slide11

Opportunity Cost of Liberty and Authority

100

80

Liberty-(% not directly impacted)

60

40

20

0

No Anti Obama speech

No Flag Burning

No questioning of the government

No Anti government speech

0

Authority – actions to increase in government power

slide12

Increasing Opportunity Cost

Increasing Opportunity Cost

Cupcakes

Cupcakes TV’s

A

300

290

240

150

0

0

1

2

3

4

300

250

200

150

100

B

50

0

TV’s

1

2

3

4