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6 Cards in this Set
- Front
- Back
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Production possibilities curve |
A graph that shows alternative ways to use an economy's resources |
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Production possibilities frontier |
The line on a production possibilities graph that shows the maximum possible output |
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Efficiency |
Using resources in such a way as to maximize the production of goods and services |
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Underutilization |
Using fewer resources than an economy is capable of using |
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Cost |
To an economist, the alternative that is given up because of a decision |
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Law of increasing costs |
Law that states that as we shift factors of production from making one good or service to another, the cost of producing the second item increases |
