FrontPage: Have PPC sheet on your desk. Last Word: Reviewing Key Concepts due tomorrow; Ch 1 quiz tomorrow Best Tip Ever Best Pet Halloween Costume Ever 1

 All things are equal  Resources are fixed  All resources are fully used  Only two things can be produced  Technology is fixed  What could actually cause a “shift” in the PPC – to the right (“out”)?  Laptops and LCD TVs?  To the left (“in”)?  Steel and Food?  What about if changes occur for only one good?  Milk

 Why is the opportunity cost of doing one more thing instead of the other NOT always a consistent number in a PPC?  domain/microeconomics/choices-opp-cost-tutorial/production- possibilities/v/increasing-opportunity-cost

Chapter 1, Section 4

 Macroeconomics – study of the economy as a whole, includes topics like inflation, (aggregate) demand, and (aggregate) supply  Microeconomics – the study of the individual players in the economy, such as individuals, families and businesses

 Positive Economics - involves describing economics as it is, NOT as it should be  Normative Economics - involves describing economics as it SHOULD BE, not as it is

 2 of the most well-known and important economic thinkers of all time…  We’ll get to Marx, but…  Adam Smith –  Founder of the study of economics  “father of modern capitalism”  Wrote The Wealth of Nations  Theorized the “invisible hand” of the market