Economic goods are goods which are scarce because their use has an opportunity cost.
Any event which changes the factors of production for one good, and not the other. e.g. an invention for one industry
No. But higher productivity will improve worker pay because the worker is producing more for a given wage rate.
Utility describes the usefulness of a product.
Take two different goods. Each axis shows the production level of each good. A curve or line demonstrates the maximum possible output of the economy as a combination of these two goods.
Scarcity is shown because it is not possible to produce outside of the PPF.
Increasing toward the margin
£5,000 per year
Labour refers to the work done by human beings as part of the production process
Any of these:
-Poor investment in Research and Development (Innovation)
-Poor transport infrastructure
-Outdated management practices
-Education system that is not preparing people to be effective workers.
-Financial system that does not give money to new firms.
-Markets that are dominated by large firms that don’t let in new firms.
