Module 3: The Production Possibilities Curve Model Flashcards
1
Q
Trade off
A
When you give up something in the order to have something else
2
Q
Production possibilities curve
A
Illustrates the trade-offs facing an economy that produces only two goods. It shows the maximum quantity of one good that can be produced for each possible quantity of the other good produce
3
Q
Efficient
A
When there is no way an economy can make anyone better off without making at least one person worse
4
Q
Technology
A
The technical means for producing goods and services
