Term
| production possibilities frontier (PPF) |
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Definition
| the boundary between those combinations of goods and services that can be produced and those that cannot |
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Term
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Definition
producing goods and services at the lowest possible cost
*occurs at all the points on the PPF |
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Term
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Definition
| the highest-valued alternative forgone |
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Term
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Definition
| when goods and services are produced at the lowest possible cost and in the quantities that provide the greatest possible benefit |
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Term
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Definition
| the opportunity cost of producing one more unit |
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Term
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Definition
| a description of a person's likes and dislikes |
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Term
| marginal benefit of a good/service |
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Definition
| the benefit recieved from consuming one more unit of it |
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