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6 Cards in this Set
- Front
- Back
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Production possibilities curve |
A curve that shows alternative ways to use an economy's resource |
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Production possibilities frontier |
The line on a graph that shows the maximum possible output for a specific economy |
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Efficiency |
Using resources in such a way as to maximize the production or output of goods and services |
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Underutilization |
Fewer resources than the economy is capable of using |
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Cost |
The alternative we give up when we choose one option over the other |
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Law of increasing cost |
This law States that as production switches from one item to another, more and more resources are necessary to increase production of the second item |
