Scarcity, possibilities, preferences and opportunity cost
How do you decide what to produce or trade? How can you maximize happiness in a world of scarcity. What are you giving up when you choose something (i.e., opportunity cost)?
Production possibilities frontier
This tutorial goes back to the basics. You are a hunter-gatherer with only so much time to hunt or gather. How do you allocate your time and energy to maximize your happiness? This is what we try to understand through our study of the production possibilities frontier and opportunity cost.
Should you try to produce everything yourself or only what you are best at and trade for everything else? What if you're better than your trading partners at everything?
This tutorial focuses on comparative advantage, specialization and gains from trade with a microeconomic lens.