02 Trade-Offs, Comparative Advantage, and the Market System 管理经济学 教学课件.pptVIP

Trade-Offs, Comparative Advantage,and the Market System Managers Making Choices at BMW After studying this chapter, you should be able to: Use a production possibilities frontier to analyze opportunity cost and trade-offs. Understand comparative advantage and explain how it is the basis for trade. Explain the basic idea of how a market system works. Production Possibilities Frontiers and Real-world Trade-offs Production Possibilities Frontiers and Real-world Trade-offs Drawing a Production Possibilities Frontier for Rosie’s Boston Bakery Production Possibilities Frontiers and Real-world Trade-offs Production Possibilities Frontiers and Real-world Trade-offs Trade Trade Specialization and Gains from Trade Trade Specialization and Gains from Trade Trade Absolute Advantage Versus Comparative Advantage Trade Comparative Advantage and the Gains from Trade Comparative Advantage and the Gains from Trade The Market System The Market System The Circular-Flow Diagram The Market System The Circular Flow Diagram Two key groups participate in markets: The Market System The Gains from Free Markets The Market System The Role of the Entrepreneur The Market System The Legal Basis of a Successful Market System BMW’s Net Profit Rises 2.5% as New Models Benefit Sales Absolute advantage Circular-flow diagram Comparative advantage Economic growth Entrepreneur Factor markets Market ? 2006 Prentice Hall Business Publishing Economics R. Glenn Hubbard, Anthony Patrick O’Brien—1st ed. CHAPTER 2: Trade-Offs, Comparative Advantage, and the Market System c h a p t e r t w o Prepared by: Fernando Yvonn Quijano LEARNING OBJECTIVES 1 2 3 … Over the years, BMW’s managers have faced strategic as well as tactical business decisions... LEARNING OBJECTIVE 1 Scarcity The situation in which unlimited wants exceed the limited resources available to fulfill those wants. Production possibilities frontier A curve showing all the attainable combinations of two products