AP_Krugman_Textbook
than constant, the production possibilities curve is a bowed-out curve rather than a straight line. Although it’s often useful t ...
What can cause the production possibilities curve to shift outward? There are two general sources of economic growth. One is an ...
22 section I Basic Economic Concepts Tackle the Test: Multiple-Choice Questions Refer to the graph above to answer the following ...
Module 4 Comparative Advantage and Trade Gains from Trade A family could try to take care of all its own needs—growing its own f ...
The benefits of specialization are the reason a person typically focuses on the produc- tion of only one type of good or service ...
production possibilities curve in Figure 3.1 (page 17). According to this PPC, Tom could catch 40 fish, but only if he gathered ...
Or we could describe the situation in a different way. Because Tom is so good at catching fish, his opportunity cost of gatherin ...
of producing the good himself. Moreover, that’s a general statement that is true when- ever two parties trade voluntarily. The s ...
economy. Perhaps its most important application is in trade—not between individuals, but between countries. So let’s look briefl ...
United States than it does in Canada. This means that the United States has a com- parative advantage in pork and Canada has a c ...
30 section I Basic Economic Concepts What is the highest price Country B is willing to pay to buy wheat from Country A? a.^1 ⁄ ...
Summary 31 Summary The Study of Economics 1.Everyone has to make choices about what to do and whatnotto do. Individual choiceis ...
32 section I Basic Economic Concepts 1.Imagine a firm that manufactures textiles (pants and shirts). List the four categories of ...
Summary 33 a.Draw a production possibilities curve with potatoes on the horizontal axis and fish on the vertical axis, and illus ...
What you will learn in this Module: 34 section I Basic Economic Concepts The importance of graphs in studying economics The bas ...
outside temperature the x-variable and number of sodas sold the y-variable. The solid horizontal line in the graph is called the ...
By convention, we put the independent variable on the horizontal axis and the dependent variable on the vertical axis. Figure A. ...
When variables are related in this way—that is, when an increase in one variable is asso- ciated with an increase in the other v ...
this by calculating the slope of the linear curve between points Aand Band between points Cand Din panel (b) of Figure A.3. = = ...
The Slope of a Nonlinear Curve A nonlinear curveis one in which the slope changes as you move along it. Panels (a), (b), (c), an ...
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