Wednesday, January 13, 2016

UNIT 1 Notes - January 7th, 2016

3 Movements of the PPC

Ø  Inside the PPC: This occurs when resources are unemployed or underemployed
Ø  Along the PPC
Ø  Shifts of the PPC: Increase shifts curve to the right (Outside original curve); Decrease shifts to the left (Inside original curve)

What causes the PPC to shift?

Ø  Technological Changes (Shift Outside/Right of the Curve)
Ø  Change in Resources (More Resources = Shift Outside/Right) (Less Labor = Shift Inside/Left)
Ø  Economic Growth (Shift Outside/Right of the Curve)
Ø  Natural Disasters/War/Famine (Shift Inside/Left of the Curve)
Ø  Change in Labor Force (Less Labor = Shift Inside/Left) (More Labor = Shift Outside/Right)
More Education & Training (Shift Outside/Right of the Curve)


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