opportunity cost PPF curve 1.1.4 Flashcards
1
Q
Consumer goods
A
goods which directlty provide utility to custumers
2
Q
capital goods
A
man- made goods used in the production of consumer goods eg machinary
3
Q
opportunity cost
A
the **benifit ** of the next best alternative given up when a choice is made
4
Q
PPF curve shows
A
the maximum possible prodction of 2 goodws/sevices with given FoPs (the curve)
5
Q
efficiency
point : a, b, c
A
on the curve = productivley efficient
6
Q
efficiency
point: d
A
inside the curve = prodictivley ineffecient
7
Q
efficiency
point: e
A
ouside the curve = unatainable with given factors of production
8
Q
increasing production
A
- shift the curve
- Q^2 CELL (quality, quantity, capital, enterprise, land, labour)
