BACAAN PERTEMUAN 4 - Ekonomi Teknologi

Worksheet Assignments
Scarcity
Scarcity
Computer Basics
Making a Worksheet
Special Features
Charts Manipulation
Wilder Ferreira, M.S.
Clemson University, SC
Data Manipulation
Worksheet Design
Introduction to Economics
APEC 308
Supply and Demand

Elasticity
Consumer Choice
Production and Cost
Quantitative Applied Economics
Perfect Competition
Market Efficiency
Monopolistic Competition
Investment Decisions
Scarcity
In Agribusiness, as in many other industries, the resources

are scarce.
Scarcity can be defined as a condition in which resources
are not available to satisfy all the needs and wants of a
specified group of people.
Scarcity is the lack of enough

resources to satisfy all desired
uses of those resources.
Scarcity the imbalance between our desires and
available resourcesforces us to make economic choices.
International Trade
Optimization Models
Computer Applications for Applied Economic Decision Analysis in Agribusiness
Opportunity Cost
Computer Basics
Making a Worksheet
Special Features
Charts Manipulation
Data Manipulation
Worksheet Design
Supply and Demand
Elasticity
Consumer Choice
Production and Cost
Perfect Competition
Market Efficiency
Scarcity
International Trade
Production Possibilities
Computer Basics
Every time we choose to use scarce

resources in one way we give up the
opportunity to use them in other ways.
Making a Worksheet
Charts Manipulation
Data Manipulation
Opportunity cost is the most

desired goods or services that are
forgone in order to obtain
something else.
It is what is given up in order to get
something else.
Worksheet Design
Supply and Demand
Elasticity
Consumer Choice
Production and Cost
Perfect Competition
Market Efficiency
Scarcity
Production
Making a Worksheet
Special Features
Production and Cost

Perfect Competition
Market Efficiency
OUTPUT OF SHOES
Data Manipulation
Consumer Choice
Production Possibilities Curve
possibilities illustrates two essential principles.
Optimization Models
Data Manipulation
Worksheet Design
Supply and Demand
Elasticity
Consumer Choice
Production and Cost

Perfect Competition
Market Efficiency
1
0
Making a Worksheet
Charts Manipulation
Scarcity
International Trade
Computer Basics
Special Features
5 A
Charts Manipulation
Elasticity
Each point on the production possibilities curve depicts

an alternative mix of output.
International Trade
Supply and Demand
Production possibilities are the

alternative combination of final
goods and services that could be
produced in a given period of time
with all available resources and
technology.
Optimization Models
Computer Basics
Optimization Models
Worksheet Design
Special Features
OUTPUT OF TELEVISIONS
Scarce resources theres a limit to

the amount we can produce in a given
time period with available resources
and technology.
Opportunity costs we can obtain
additional quantities of any desired
good only by reducing the potential
production of another good.
Scarcity
International Trade
Optimization Models
Increasing Opportunity Costs

Making a Worksheet
Special Features
Charts Manipulation
Data Manipulation
Worksheet Design
We must give up increasing amounts of other goods to get

more of a particular good.
Why the increase? Mostly because it is difficult to move
resources from one industry to another.
5 A
Supply and Demand
Elasticity
Production and Cost

Perfect Competition
Market Efficiency
OUTPUT OF
SHOES
Consumer Choice
Worksheet Design
Market Efficiency
Special Features
Charts Manipulation
International Trade
Optimization Models
Data Manipulation
Worksheet Design
Unreachable Production
A production possibilities curves shows potential output, not

necessarily actual output.
Theres no guarantee that resources will always be used
efficiently.
OUTPUT OF SHOES
Making a Worksheet
Supply and Demand
Elasticity
Consumer Choice
Production and Cost
Perfect Competition
Market Efficiency
Scarcity
International Trade
Computer Basics
Special Features
Charts Manipulation
Data Manipulation
Worksheet Design
Supply and Demand

Elasticity
Consumer Choice
2 Unemployment
1
1
2
3
4
5
Production and Cost

Perfect Competition
Market Efficiency
Scarcity
Making a Worksheet
Special Features
Charts Manipulation
Data Manipulation
Worksheet Design
Supply and Demand
Elasticity
Consumer Choice
Production and Cost
Perfect Competition
Market Efficiency
Scarcity
International Trade
Optimization Models
Your boss, at Gamecock Tractors Inc., was happy with

you for figuring out his customers Total Utility of 28.125.
But, he cannot make production decisions based on a single
customer only. The profit analysis helped him decide the
optimal production when MR=MC. He needs more
information.
Given current resources and technology, he is asking you to
analyze the combinations of products A and B that can be
produced using a given level of input through the use of a
production possibilities curve.
The input level to be used is 10 units of labor. This limited
resource available will allow for the increase of production of
one product WHILE the production of the other product
decreases.
5 A
4
3
2
1
X
B
Currently not attainable
International Trade
Optimization Models

Computer Basics
A point outside the production possibilities curve suggests

that we could get more goods than we are capable of
producing!
All output combinations that lie outside the production
possibilities curve are unattainable with current resources and
technology.
Making a Worksheet
5 A
4
Optimization Models
Efficiency means getting the

maximum output of a good from
the resources used in production.
Every point on a production
possibilities curves is efficient and
indicates full employment of all
resources.
Scarcity
Inefficiency
Computer Basics
Consumer Choice
Perfect Competition
Data Manipulation
Production and Cost
International Trade
Optimization Models
Charts Manipulation
Elasticity
Scarcity
Special Features
Supply and Demand
Step 3: give up another shoe
Step 2: get two

C
3
TVs Step 4: get one more TV
D
2
Making a Worksheet
Step 1: give up one shoe
Efficiency
Computer Basics
OUTPUT OF SHOES
Computer Basics

Computer Basics
Making a Worksheet
Special Features
Charts Manipulation
Construct a line or XY (scatter) chart showing the production

possibilities curve for products A and B. Use quantities of
good A (Q(A)) as the x-axis.
Data Manipulation
Worksheet Design
Supply and Demand
Elasticity
Consumer Choice
Production and Cost
Perfect Competition
Market Efficiency
Scarcity
International Trade
Optimization Models

Computer Basics
Making a Worksheet
Special Features
Charts Manipulation
Data Manipulation
Worksheet Design
Supply and Demand
Quiz 96: When the company is producing 32,000 units of

good A and 20,000 unit of good B, what do you
conclude? Is it good or bad for your boss?
Resources are not fully employed. Inefficiencies
exist. It is bad. He has to improve efficiency to the
point where labor is fully utilized. He is losing
money.

Computer Basics
Making a Worksheet
Special Features
Charts Manipulation
Data Manipulation
Worksheet Design
Supply and Demand

Elasticity
Consumer Choice
Consumer Choice
Production and Cost
Production and Cost
Perfect Competition
Perfect Competition
Market Efficiency
Market Efficiency
Scarcity
Scarcity
International Trade
International Trade
Optimization Models
Optimization Models

Making a Worksheet
Special Features
Charts Manipulation
Data Manipulation
Worksheet Design
Supply and Demand
Elasticity
Quiz 98: Producing more than 28,000 units of good A,

does its opportunity cost increase or decrease? Why?
Would you favor this situation?
It increases in terms of good B. More and more
units of good B are required to be given up
production in order to favor the production of good
A. Yes, if productivity of good B per labor used
increase to avoid this situation.
Economic Growth
Computer Basics
Making a Worksheet
Special Features
Charts Manipulation
Data Manipulation
Worksheet Design
Supply and Demand
Elasticity
Consumer Choice
Consumer Choice
Production and Cost
Production and Cost
Perfect Competition
Perfect Competition
Market Efficiency
Market Efficiency
Scarcity
Scarcity
International Trade
International Trade
Optimization Models
Optimization Models
Economic Growth
Computer Basics
Charts Manipulation
Data Manipulation
Worksheet Design
Supply and Demand
Elasticity
Consumer Choice
Production and Cost
Making a Worksheet
OUTPUT OF SHOES
Special Features
PP2
Special Features
Charts Manipulation
Data Manipulation
PP1
Worksheet Design
Consumer Choice
Production and Cost
Market Efficiency
Market Efficiency
Scarcity
Scarcity
It occurs when a society acquires new resources

(larger labor force or increased capital stock) or when
society learns to produce more with existing resources
(technological change, innovation, or new equipment).
Measuring opportunity cost along a production possibility

curve:
To measure (average per unit) opportunity costs between two

points along a production possibility curve divide the number of
units lost (as a result of moving along the PPC) by the number of
units gained.
Elasticity
Perfect Competition
Optimization Models
Economic growth is an increase in

output (real GDP) an expansion of
production possibilities.
Supply and Demand
Perfect Competition
International Trade
Production possibilities increase with more resources

or better technology.
The production possibilities curve shifts outward.
Economic Measures
Computer Basics
Making a Worksheet
The opportunity cost is the same as the decreasing

units of good B (32,000 28,000 = 4,000 units)
Elasticity
Computer Basics
Quiz 97: When the company is producing 24,000 units of A

and 36,000 units of B, the opportunity cost of
producing 4,000 more units of good A is fewer than,
greater than or the same as the decreasing units of
good B?
International Trade
Opportunity Cost =
Quantity Lost
------------------------------Quantity Gained
Measuring total revenue along a production possibility

curve:
Total Revenue = Price A * Quantity A + Price B * Quantity B
Optimization Models
Advance in Technology
Computer Basics
Making a Worksheet
Special Features
Charts Manipulation
Data Manipulation
Worksheet Design
Supply and Demand
Elasticity
Your boss, at Gamecock Tractors Inc., now knows how

production possibilities may affect his business in the future
if new technology comes into play.
You must tell him more about the production possibilities
frontier when advances in productivity take place in his
company. He wants to know if it would be required to adjust
capacity.
Computer Basics
Making a Worksheet
Special Features
Charts Manipulation
Data Manipulation
Supply and Demand
Elasticity
Consumer Choice
Production and Cost
Production and Cost
Perfect Competition
Perfect Competition
Market Efficiency
Market Efficiency
Scarcity
Scarcity
International Trade
International Trade
Optimization Models
Optimization Models
Making a Worksheet
Special Features
Charts Manipulation
Data Manipulation
Worksheet Design
Supply and Demand
Quiz 99: Comparing Q(B) to Q(B), what is the effect on

production of good B when production of good A is at
24,000 units?
The new production possibilities curve that has
been shifted outward now allows for the firm to
produce 40,500 units of good B as opposed to
36,000 units.
Construct a line or XY (scatter) chart showing the production

possibilities curves for products A and B before the advance
in technology and after the advance. On the chart, show Q(B)
and Q(B). Use quantities of good A (Q(A)) as the x-axis.
Worksheet Design
Consumer Choice
Computer Basics
Computer Basics
Making a Worksheet
Special Features
Charts Manipulation
Data Manipulation
Worksheet Design
Supply and Demand
Elasticity
Elasticity
Consumer Choice
Consumer Choice
Production and Cost
Production and Cost
Perfect Competition
Perfect Competition
Market Efficiency
Market Efficiency
Scarcity
Scarcity
International Trade
International Trade
Optimization Models
Optimization Models
Quiz 100: Compare revenues for both curves when

producing 20,000 units of product A. Price of A is $5
and B is $10. Does total revenue increase?
Before advance in Technology: TR = 20,000 * 5 + 39,000 *
10 = $490,000. After the advance in Technology: TR =
20,000 * 5 + 44,000 * 10 = $540,000. Yes.
Quiz 101: Compare opportunity costs (OC) for both curves
when increasing production of product A from 20,000
to 24,000 units? Are the opportunity costs the same?
Before advance in Technology: OC = (39,000 36,000) /
(24,000 20,000) = 3,000 / 4,000 = 0.75. After the advance in
Technology: OC = (44,000 40,500) / (24,000 20,000) =
3,500 / 4,000 = 0.88. No. At this particular movement on the
curve, the more technology, the more opportunity cost to
produce product A. Less OC to produce product B.

BACAAN PERTEMUAN 4 - Ekonomi Teknologi

Diunggah oleh

Informasi Dokumen

Judul Asli

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

BACAAN PERTEMUAN 4 - Ekonomi Teknologi

Diunggah oleh

Hak Cipta:

Format Tersedia

Worksheet Assignments

Wilder Ferreira, M.S.

Supply and Demand

Quantitative Applied Economics

In Agribusiness, as in many other industries, the resources

Scarcity is the lack of enough

Computer Applications for Applied Economic Decision Analysis in Agribusiness

Every time we choose to use scarce

Opportunity cost is the most

Production and Cost

Production Possibilities Curve

possibilities illustrates two essential principles.

Production and Cost

Each point on the production possibilities curve depicts

Production Possibilities Curve

Supply and Demand

Production possibilities are the

Scarce resources theres a limit to

Increasing Opportunity Costs

We must give up increasing amounts of other goods to get

Production and Cost

A production possibilities curves shows potential output, not

Supply and Demand

Production and Cost

Your boss, at Gamecock Tractors Inc., was happy with

Currently not attainable

Production Possibilities Curve

A point outside the production possibilities curve suggests

Efficiency means getting the

Production and Cost

Supply and Demand

Step 3: give up another shoe

Step 2: get two

Step 1: give up one shoe

Production Possibilities Curve

Construct a line or XY (scatter) chart showing the production

Production Possibilities Curve

Quiz 96: When the company is producing 32,000 units of

Production Possibilities Curve

Supply and Demand

Production and Cost

Production and Cost

Production Possibilities Curve

Quiz 98: Producing more than 28,000 units of good A,

Production and Cost

Production and Cost

It occurs when a society acquires new resources

Measuring opportunity cost along a production possibility

To measure (average per unit) opportunity costs between two

Economic growth is an increase in

Supply and Demand

Production possibilities increase with more resources

The opportunity cost is the same as the decreasing

Quiz 97: When the company is producing 24,000 units of A

Measuring total revenue along a production possibility

Total Revenue = Price A * Quantity A + Price B * Quantity B

Your boss, at Gamecock Tractors Inc., now knows how

Production and Cost

Production and Cost

Quiz 99: Comparing Q(B) to Q(B), what is the effect on

Construct a line or XY (scatter) chart showing the production

Production and Cost

Production and Cost