For you to survive there are something's that you need, This is why we call it "needs", but we only have a certain amount of money to spend on these needs, so how do we decide on how much to spend? Well in this case we use a PPC graph, this stands for Production Possibility Curve. In this essay I will be explaining the concepts of scarcity, choice, opportunity cost, unemployment and economic growth and there position on the PPC. In the description there will be definitions, examples and where its positioned on the PPC. I will be arguing in favor of balanced expenditure.
Scarcity in economics refers to limited resources, we need scarcity otherwise we could just go out and produce any amount of any good, this would effect the PPC graph making it have no frontier, with no frontier we would have every single point inside the frontier making it closer to the point of inefficiency.
Author unknown, 'scarcity' investopedia,< www.investopedia.com/terms/s/scarcity.asp > 24 jan
The letter d represents the point of scarcity on the ppc
choice is pretty self explanatory as by its name, choice is the "choice" that a person faces when he or she needs to make a decision on how much to spend on which product, on the PPC graph your choice is represented on the x and y axis.
For example the government needs to make a choice on how much to spend on health and how much to spend on guns, but they have a budget to go to, the must choose a,b,c representing how much they are to spend on each choice.
Heakal,R 'CHOICE' investopedia, < http://www.investopedia.com/university/economics/economics2.asp > 23 jan
Guns and health are my example for you here.
Opportunity cost is a...