L3 opportunity cost and PPF

Question 1

Opportunity Cost

Answer 1

the value of the next best alternative that is foregone whenever a choice is made.

Question 2

Production Possibility Frontier (PPF)

Answer 2

The graphical representation of the choices available to society regarding how resources may be used.

Question 3

Productive Capacity

Answer 3

The point at which production ( or GDP ) is occurring at the maximum level possible in the economy.

Question 4

Types of efficiency

Answer 4

1 - Productive/technical efficiency
2 - Allocative efficiency

Question 5

Productive efficiency

Answer 5

producing the largest possible output from the available resources in an economy, when it is not possible to increase outputs WITHOUT increasing resources

Question 6

Allocative efficiency

Answer 6

Allocative efficiency means the same thing as allocational efficiency, which comes about when services and goods marketed to consumers are distributed in a way that is beneficial not only to the sellers but also to the buyers.

In simple terms:
Allocation of resources to MAXIMISE LIVING STANDARDS