Chapter 3 - Production Possibility Frontiers Flashcards
1
Q
Define - “Capital Goods”
A
Goods that are used in the production of other goods, such as factories, offices, roads,machines and equipment.
2
Q
Define - “Consumer goods”
A
Goods and services that are used by the people to satisfy their needs and wants.
3
Q
Define - “Production Possibility Frontier”
A
A curve that shows the maximum potential level of output of one good given a level of output for all other goods in the economy.
