Business Economics
Assignment on Micro-Economics
Submitted To:
Md. Ridwan Reza
Lecturer
Department of Business Administration
Leading University,Sylhet.
Submitted By:
Rahat Sarwat Md. Sal Sabil ID: 1001010143
Md. Saddam Hussain ID: 1001010101
Adnan Islam ID: 1001010144
Syed Shaker Ahmed ID: 1001010125
Md. Lahinur Rahman ID: 1001010129
Department:Business Administration
Semester:3rd
Section:C
Date of Submission:
28.09.2010
Question No: 3
Define each of the following terms carefully and give examples: PPF,scarcity, productive efficiency,inputs,outputs.
Answer:
Production possibility frontier (PPF): PPF shows the maximum quantity of goods that can be efficiently produced by an economy,given its technological knowledge and the quantity of available inputs.
For example: If the choice is reduced to two goods,guns and butter.Points outside the PPF are unattainable.Points inside it are inefficient since resources are not being fully employed, resources are not being used properly or outdated production techniques are being utilized.
Scarcity: The distinguishing characteristic of an economic good.That an economic good is scarce means not that it is rare but only that it is not freely available for the taking. To obtain such a good, one must either produce it or offer other economic goods in exchange.
For example: Gas, coal etc.
Productive efficiency: A situation in which an economy cannot produce more of one good without producing less of another good;this implies that the economy is on its PPF.
For example: If we produce more butter without reducing gun production.
Inputs: Inputs are commodities or services that are used to produce goods and services. An economy uses its existing technology to combine inputs to produce outputs.
For example:
Submitted To:
Md. Ridwan Reza
Lecturer
Department of Business Administration
Leading University,Sylhet.
Submitted By:
Rahat Sarwat Md. Sal Sabil ID: 1001010143
Md. Saddam Hussain ID: 1001010101
Adnan Islam ID: 1001010144
Syed Shaker Ahmed ID: 1001010125
Md. Lahinur Rahman ID: 1001010129
Department:Business Administration
Semester:3rd
Section:C
Date of Submission:
28.09.2010
Question No: 3
Define each of the following terms carefully and give examples: PPF,scarcity, productive efficiency,inputs,outputs.
Answer:
Production possibility frontier (PPF): PPF shows the maximum quantity of goods that can be efficiently produced by an economy,given its technological knowledge and the quantity of available inputs.
For example: If the choice is reduced to two goods,guns and butter.Points outside the PPF are unattainable.Points inside it are inefficient since resources are not being fully employed, resources are not being used properly or outdated production techniques are being utilized.
Scarcity: The distinguishing characteristic of an economic good.That an economic good is scarce means not that it is rare but only that it is not freely available for the taking. To obtain such a good, one must either produce it or offer other economic goods in exchange.
For example: Gas, coal etc.
Productive efficiency: A situation in which an economy cannot produce more of one good without producing less of another good;this implies that the economy is on its PPF.
For example: If we produce more butter without reducing gun production.
Inputs: Inputs are commodities or services that are used to produce goods and services. An economy uses its existing technology to combine inputs to produce outputs.
For example: