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Lect 1_Introduction to Economics_1101
Lect 1_Introduction to Economics_1101
Lect 1_Introduction to Economics_1101
Efficiency v. Equity
Efficiency means society gets the most that it can
from its scarce resources.
Equity means the benefits of those resources are
distributed fairly among the members of society.
LA Laker basketball
star Kobe Bryant chose
to skip college and go
straight from high
school to the pros
where he has earned
millions of dollars.
3,000 D
Production possibilities set
C
2,200
2,000 A
Production
possibilities
frontier
1,000 B
4,000
3,000
2,100 E
2,000
A