4.1 - 1.5 Production possibility diagrams Flashcards
1
Q
Purpose of production possibility diagrams.
A
2
Q
Productive efficiency
A
The optimal output being produced as a result of the available inputs and technology.
3
Q
Allocative efficiency
A
The mix of goods a society produces based on the wants of those within that economy.
4
Q
Resource depreciation
A
The deterioration of resources over a period of time (e.g - machinery, buildings, basic infrastructure)
5
Q
Resource depletion
A
The exhaustion of natural resources (e.g - mining or quarrying for raw materials until there isn’t any more available from that particular source)
