a graph that shows alternative ways to use a country’s productive resources
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production possibilities frontier
a line on a production possibilities curve that shows the maximum possible output an economy can produce
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Efficiency
the use of resources in such a way as to maximize the output of goods and services
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underutilization
the use of fewer resources than an economy is capable of using
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law of increasing costs
an economic principle which states that as production shifts from making one good or service to another more resources are needed to increase production of the second good or service