1.3 Opportunity cost and PPC's Flashcards
1
Q
Opportunity cost
A
opportunity cost in decision making is the value of the next-best alternative forgone
2
Q
Trade off
A
A situation in which the choice of one alternative requires the sacrifice of another
3
Q
Production possibility curve
A
A curve showing the maximum combinations of goods or services that can be produced in a set period of time given available resources
