Lesson 6 Flashcards
1
Q
PPC
A
production possibility curve
2
Q
another word for PPC
A
PPF
3
Q
PPF
A
Production Possibility Front
4
Q
Draw an example PPC/PPF curve for potatoes and onions
A
N/A
5
Q
What does a movement along a PPC mean?
A
a change in preference
6
Q
What does an outward shift in the PPC mean?
A
an increase in the productive capacity of the economy
7
Q
What does a point along a PPC line mean?
A
it is efficient
8
Q
What does a point below a PPC mean?
A
it is inefficient
9
Q
What does a point above the PPC and floating in the air mean?
A
that value is impossible
given the present resources
