Surely you must be aware that food costs a lot more nowadays than it used to before. This is because the cost of production of food has increased. There are many factors that have affected this increase in cost of production, one of them being that corns, a staple diet of most people in the world, is now used for production of ethanol. Ethanol is a clean substitute of biofuel gasoline. Another factor that has enhanced cost of production is the prevalence of draughts in many parts. In the following chapter you will come to know about production and its possibilities. Production is an essential part of any economic model and it will teach you how to assess a situation and expand the frontiers of production possibilities.
Link of Previous Main Topic:-
Links of Next Macroeconomics Topics:-
- Production Possibilities and Opportunity Cost
- Production Efficiency
- Trade Off Along the PPF
- Opportunity Cost
- Using Resources Efficiently
- Allocative Efficiency
- Economic Growth
- A Nations Economic Growth
- Gains from Trade
- Economic Coordination
- Firms
- Markets
- Property Rights
- Money
- The Rising Opportunity Cost of Food
