Term
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Definition
1 - what gets produced
2 - how is it produced
3 - who gets it |
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Term
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Definition
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Term
| theory of comparative advantage |
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Definition
| specialization and free trade would benefit all trading partners even when some are "absolutely" more efficient then others |
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Term
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Definition
| if a producer can produce a good or service using fewer resources |
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Term
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Definition
| if a producer can produce a good or service at a lower opportunity cost |
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Term
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Definition
| if a producer can produce a good or service at a lower opportunity cost |
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Term
Production Possibilities Frontier
(PPF) |
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Definition
graph that shows all combinations of goods and services that can be produced using
-full employment of resources
-production efficiency |
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Term
| what 2 factors produce the PPF? |
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Definition
full employment of resouces
production efficiency |
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Term
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Definition
marginal rate of transformation
(value of the slope at PPF) |
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Term
| What causes economic growth |
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Definition
more resources
better technology |
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