Shortage, opportunity cost and the PPC

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The basic economic problem is rooted both in the natural world and in human greed. We live in a world of limited resources, but it seems we have unlimited desires. This results in scarcity, which gives rise to the very field of the economy, which deals with how to allocate scarce resources between the wishes and needs of society.

This lesson will present these basic economic concepts, along with the first graph (and perhaps the most useful) that an economics student will learn, the Production Possibilities Curve.

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