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8 Cards in this Set
- Front
- Back
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absolute advantage
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- being able to complete a task using fewer resources (time, money, etc.)
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comparative advantage
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- being able to complete a task at a lower opportunity cost
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attainable points on the PPC
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- inside or on the curve
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unattainable points on the PPC
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- outside of the curve
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efficient points on the PPC
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- on the curve
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inefficient points on the PPC
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- inside the curve
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principle of increasing opportunity costs
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- occurs because people will first employ the resources with the lowest OC and then they'll run out of them and need to employ others with increased OCs
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two ways to increase PPC
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1.) increase resources
2.) increase technology - get more out of existing resources |
