Chapter 2 Flashcards
(8 cards)
1
Q
absolute advantage
A
more productive than another
2
Q
allocative efficiency
A
resources are used where they are most highly valued
3
Q
capital accumulation
A
the growth of capital resources
4
Q
comparative advantage
A
produce at a lower opportunity cost than other
5
Q
economic growth
A
expansion of production possibilities
6
Q
preferences
A
description and intensity of likes and dislikes
7
Q
production efficiency
A
production at the lowest possible cost
8
Q
production possibilities frontier
A
boundary between producible and unproducible combinations of goods
