Intro part 2: Production possibilities curves Flashcards
1
Q
Free goods
A
-Are not scarce, therefore theres no opportunity cost of using them.
2
Q
Economic goods
A
-Are scarce, therefore there is an opportunity cost to using them.
3
Q
Production possibility chart
A
A diagrammatic way to demonstrate possible output far an economic entity.
4
Q
A straight line
A
ppc shows constant opportunities cost.
5
Q
Curved line
A
ppc shows changing opportunities cost.
6
Q
Scarcity as relates to ppc
A
Because of scarcity: the economy cannot produce outside its ppc. pg 16
7
Q
Choice as relates to ppc
A
Because of scarcity =: The economy must make a choice about what particular combinations of goods will be produced
8
Q
opportunity cards as relates to ppc
A
choices involve opportunity pg 16-17
9
Q
Factors effecting economic growth (Factors that lead to outward shift)
A
- Unemployment
- Inefficiency
- Increase in production possibilities
- Improvements in resources quality and technological advancement
