chapter 1 section 3 vocab Flashcards
1
Q
economic models
A
simplified representation of complex economic activities, systems, or problems-to clarify trade-offs
2
Q
production possibilities curve
A
a graph to illustrate the impact of scarcity on an economy by showing the maximum number of goods or services that can be produced using limited resources
3
Q
efficiency
A
the condition in which economic resources are being used to produce maximum amounts of goods and services
4
Q
underutilization
A
the condition in which economic resources are not being used to their full potential
5
Q
law of increasing opportunity costs
A
as production switches from one product to another, increasingly more resources are needed to increase the production of the second product, which causes opportunity costs to rise
