1.3 OPPORTUNITY COSTS Flashcards
1
Q
what is opportunity cost
A
the benefit lost of the next best alternative when making a choice
2
Q
what causes the PPC to shift
A
change in any factors of production
3
Q
what is meant by a trade off
A
when you choose one thing which causes you to have to give up, or sacrifice, another
4
Q
what can the PPC show
A
- concepts of scarcity
- choice and opportunity cost
- productive efficiency
5
Q
A
