Studied by 0 peopleGoals: - Understand the concept of scarcity of economic resources (factors of production - Examine why the "ceteris paribus" condition is necessary to this model - Analyze and apply production possibilities curve - Define allocative and productive efficiency
Consumer Goods
1.2 Products and services that satisfy human wants directly.
Capital Goods
1.2 (See capital.)
Production Possibilities Curve
1.2 A curve showing the different combinations of two goods or services that can be produced in a full-employment, full-production economy where the available supplies of resources and technology are fixed.
Law of Increasing Opportunity Costs
1.2 The principle that as the production of a good increases, the opportunity cost of producing an additional unit rises.
Economic Growth
1.2 (1) An outward shift in the production possibilities curve that results from an increase in resource supplies or quality or an improvement in technology; (2) an increase of real output (gross domestic product) or real output per capita.
Note
Flashcard