1.1.4 - Production possibility frontier Flashcards
1
Q
What are consumer goods?
A
goods that are demanded and bought by households and individuals.
1
Q
What is a PPF?
A
a diagram illustrating the maximum quantities that can be produced of 2 goods with a given amount of resources and technology.
2
Q
What are capital goods?
A
goods that are produced in order to aid the production of consumer goods in the future
3
Q
What is economic efficiency?
A
Economic efficiency is achieved when resources are used for their best use.
