Production Possibilities Curve

• Points: Efficient, Inefficient, Impossible

• Shifters: Δ in Resources or Δ in Technology

• Law of Increasing Opportunity Cost (bowed out shape)

• Calculate opportunity cost

Comparative Advantage

• Input or output question?

• Input = Other Goes Under (IOU)

• Output = Other Goes Over (OOO)

• Comparative Advantage = Look for lower number after performing calculation

Utility

• Marginal means "additional"

• You must take Marginal Utility / Price (when comparing two goods)