Chapter 4 - Production Possibility Frontier

Question 1

Capital Goods

Answer 1

Goods used to produce other goods. Factories, roads, machine.

Question 2

Consumer Goods

Answer 2

Goods and services used by people to satisfy needs and wants.

Question 3

Margin

Answer 3

Point of possible change

Question 4

PPF

Answer 4

Production Possibility Frontier. Curve showing the maximum potential output level of one good, given the output level for all other goods in the economy.