Term
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Definition
| the cost of the loss of the next most desirable good or service that could have been produced with a resource. |
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Definition
| personal satisfaction gained from the use of goods or services |
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Term
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Definition
| to determine value of goods and services |
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Term
| what is the problem with value? |
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Definition
| whose value will prevail in what is produced? |
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Term
| Define POSSIBILITY FRONTIERS |
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Definition
| line on a graph that shows the various amounts of services a country can produce with its existing resources and technology. |
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Term
| how are possibility frontiers used? |
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Definition
| to determine trade offs and opportunity costs |
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Term
| what is a straight line used for? |
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Definition
to determine total out put of 2 products and trade offs (constant ratios) dot represents under production dot represents over production |
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Term
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Definition
1) used when 2 products cannot be traded at a constant ratio (off-ratio) 2) opportunity cost of a good varies as more of it is produced 3) shows choices available, but not which trade off is best.
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Term
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Definition
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Definition
possibility frontier can reflect change a) change in resources b) change in technology (usually increases) c) change in efficiency |
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Term
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Definition
increases in production due to resources or technology increase (upward/right) decrease (downward/left) |
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