Extract from paper:
Chapter 1: What is economics about?
Economics is concerned with addressing the economic problem of satisfying unlimited wants with our scarce resources.
Each economy must answer the following four basic questions:
What to produce?
How much to produce?
How to produce?
How to distribute production?
Whenever we choose to produce or consume one product, we miss out on the alternative products that could have been produced using those resources. This is known as the opportunity cost.
The production possibility frontier is a simple way of explaining opppotunity cost. Assuming that only two g...