A country does not need to be able to produce more of a good than another country in order to have a comparative advantage in that good., No functioning market is completely devoid of government intervention., The production possibilities frontier tells us which combination of products an economy should produce. , If economic profit is positive for a firm it is almost certain that accounting profit is positive as well., If a particular way of producing a good is technically efficient it must also be economically efficient., n a simple two-good model, if a country is using all of its resources efficiently its production possibilities frontier must be sloping downward., The opportunity cost of an item or an action is always equal to the amount of money a person pays to enjoy that item or action., To suppliers, if the price of a good rises the opportunity cost of not producing it falls, An increase in the minimum wage if likely to create a shortage of teenage workers., A taxed imposed on electricity is likely to have a greater deadweight loss per dollar raised than an equal tax Rayovac Ultra Pro AAA batteries.

ECON 40 Session

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