Economics By Colander Chapter 2

Front 1

Every economy must solve three main coordination problems:

Back 1

1- What, and How much to produce?
2- How to produce it?
3- for whom to produce it?

Front 2

Production possibility table

Back 2

a table that lists a choice's opportunity costs by summarizing what alternative outputs you can achieve with your inputs (resorces)

Front 3

Production possibility curve (PPC) is ..

Back 3

A curve measuring the maximum combination of outputs that can be obtained from a given number of inputs

Front 4

The Production possibility curve demonstrates that :-

Back 4

1- There is a limit to what you can achieve.
2- Every choice you make has an opportunity.

Front 5

The principle of increasing marginal opportunity cost is :-

Back 5

In order to get more of something, one must give up ever-increasing quantities of something else.

Front 6

Why are the production possibility curves typically bowed outward?

Back 6

Because some resources are better suited for the production of certain kind of goods than other kinds of goods.

Front 7

Comparative advantage:-

Back 7

the ability to be better suited to the production of one good than to the production of another good

Front 8

Productive efficiency

Back 8

Achieving as much output as possible from a given amount of inputs or resources