Enhance Your Learning with Economics - Production Possibility Frontier Flash Cards for quick learning
A graphical representation of the maximum combination of goods and services that an economy can produce given its resources and technology.
The value of the next best alternative that must be given up in order to obtain something else.
The state of achieving the maximum possible output from available resources.
The sacrifices made in order to obtain more of one good or service at the expense of another.
Changes in the economy's ability to produce goods and services, resulting in a shift of the production possibility frontier.
An increase in the economy's ability to produce goods and services over time.
The limited availability of resources in relation to unlimited wants and needs.
The resources used in the production of goods and services, including land, labor, capital, and entrepreneurship.
The concentration of an individual, firm, or country's productive efforts on a limited range of activities.
The way in which a society organizes the production, distribution, and consumption of goods and services.
An economic system in which the production and distribution of goods and services are determined by the interactions of buyers and sellers in a competitive market.
An economic system in which the production and distribution of goods and services are controlled by a central authority.
The production of goods and services that best satisfy society's wants and needs.
The production of goods and services using the fewest possible resources.
The benefits that individuals, firms, and countries can achieve by specializing in the production of goods and services in which they have a comparative advantage.
A state of allocation in which it is impossible to make any one individual better off without making at least one individual worse off.
Points outside the production possibility frontier that cannot be achieved given the current resources and technology.
A situation in which resources are not being used to their full potential, resulting in a point inside the production possibility frontier.
The principle that as the production of one good increases, the opportunity cost of producing an additional unit of that good increases.
The purchase of capital goods or the creation of new capital goods in order to increase future production.
Goods that are produced for immediate consumption and satisfy human wants directly.
Improvements in technology that increase the economy's ability to produce goods and services.
The inputs used in the production of goods and services that are obtained from nature, such as land, water, and minerals.
The knowledge, skills, and abilities that individuals possess and contribute to the production of goods and services.
The process of improving the economic well-being and quality of life of a country's population.
The exchange of goods and services between countries.
The ability of a country, individual, or firm to produce a good or service at a lower opportunity cost than others.
The ability of a country, individual, or firm to produce more of a good or service than others using the same amount of resources.
The ratio at which a country can trade its exports for imports from other countries.
The focus on producing a limited range of goods and services in which a country, individual, or firm has a comparative advantage.
The reliance of countries, individuals, and firms on each other for goods, services, and resources.
An economic system that combines elements of both market and command economies.
A model that shows the flow of goods, services, and money between households and firms in an economy.
The forces that determine the quantity of a good or service that buyers are willing and able to purchase at various prices, and the quantity that sellers are willing and able to produce and sell at various prices.
The process by which the equilibrium price and quantity of a good or service are determined in a market.
The point at which the quantity demanded equals the quantity supplied, resulting in a stable price and quantity in a market.
Changes in the factors that influence the quantity demanded or supplied of a good or service, resulting in a shift of the demand or supply curve.
Government-imposed limits on the prices that can be charged for goods and services.
Situation in which the allocation of goods and services by a free market is not efficient, leading to a net loss of economic welfare.
Costs or benefits that are not reflected in the market price of a good or service and are therefore not taken into account by buyers and sellers.
Goods that are non-excludable and non-rivalrous, meaning that they are available to all individuals and one person's consumption does not reduce the amount available to others.
The way in which income is divided among individuals or households in a country.