Econ chap 1-3

Opportunity Cost

the best thing you must give up to get something else (highest value alternative) 

Attainable vs. unattainable

anything on or inside ppf curve is attainable anything outside is not

efficient vs inefficeint

any point on ppf curve is efficient anything under is inefficient

trade off

where a choice must be made between two or more competing alternatives, moving from one efficient point to another along ppf

free lunch

moving from an inefficient point under the ppf curve to an efficient one

ppf shifters

improved technology, improved labor quality, increased quantity of capitol

absolute advantage

When one person or nation is more productive than another who makes absolutely more

Comparative advantage

who can produce item at lower opportunity cost (cannot have it in both!)