The main goals of this chapter are to: Apply production possibilities analysis, increasing opportunity costs, and economic growth; explain how economic growth and international trade increase consumption possibilities; understand graphs, curves, and slopes as they relate to economics.
Trang 1Limits, Alternatives, and Choices
Appendix
McGrawHill/Irwin Copyright © 2012 by The McGrawHill Companies, Inc. All rights reserved.
Trang 2Income Consumption Point
$ 0
100
200
300
400
$ 50 100 150 200 250
a b c d e
$100 200 300 400
a
b
c
d
e
$400 300 200
100 0
Trang 3together
Trang 4other
Trang 5Income (Y)
$100 200 300 400
$400 300 200
100
0
50 100
Vertical Change Horizontal Change
Trang 6Ticket Price Attendance
(thousands)
Trang 750 40 30 20 10
4 8 12 16 20
-10
4
Horizontal Change
Vertical Change
Attendance
Trang 8units
analysis
Trang 9Slope = Infinite
Slope = Zero Slope of a Line
Trang 10Equation of a Linear Relationship
Trang 11Income (Y)
$100 200 300 400
$400 300 200
100
0
Y = 50 + 5C
Trang 12P = 50 – 2.5Q
50 40 30 20 10
4 8 12 16 20
Trang 13curve to find the slope at that point
Trang 1420 15 10 5
0
5 10 15 20