KEY TERM

1.Factors of production(FOP）生产要素

2.Production possibility frontinal/curve（PPF）生产可能性曲线（斜率递减的曲线）

3.The law of increasing marginal opportunity cost边际机会成本递减法则

一、生产要素包括：1.land自然资源

         2.labor劳动

         3.captial资本

      4.enterpreneurship企业家才能（new ideas、make business、bear the risks）

二、PPF

1、可能生产的和不能生产的量的组合（线上和线内的都能生产出来，线外的已经超出能力范围，不能生产出来）

2、有效（所有线上的点）和非有效（线内一点）的生产

3、交替的关系（you must give up something to get something else）和免费的午餐（you get something without giving up something else）

三、边际机会成本

1、The law of incresinmg marginal opportunity costs.It states that there is a rise in the marginal cost of producing a good as more of that good is produced.

说明一个企业在生产的过程中，生产的量越多，多生产一件产品所面临的机会成本越大。

2、边际机会成本为什么会呈上升趋势？

This happens because not all resources are as equally productive in one production compared to another.资源没有平等地分配在两种产品的生产上。

3、PPF will shift outward if there is an increase in：

• technology
• total quantity of FOP（生产要素总量）

PPF will shift inward if there is an decrease in：

• technology
• total quantity of FOP

4、当PPF外扩，可以说明一个国家经济体的进步，经济增长；

当PPF內扩，经济退步；

当一个端点不变，另一个端点外扩，说明一个企业生产过程中专业化的改变带来的增长。

5、什么因素导致PPF变化？

1.investment

  increase of capital stock（生产资料数量的积累）

2.depreciation 生产资料的折旧

6、如何保持经济可持续增长？

• improve the quality of labor by education.
• develop better technologies.
• on-the-job training.
• working experience.
• get more machines to help us produce.

scarcity稀缺性

The basic economic problem基本经济问题

opportunity cost机会成本

economic system经济体系

什么是稀缺性？

It is a situation in which there are too few resources to meet all human wants

我们该怎样做？

we must choose between options

经济学：1.microeconomics

     2.macroeconomics

choosing one thing means giving up something else in exchange

this is called trade-offs

Therefore， economics focus only on the most important trade-off

This is opportunity cost. It is the benefits lost from the next best alternative/choice.