Lesson 5 - Production Possibility Curves Flashcards
1
Q
What does the PPC show?
A
The possible production of 2 goods/services
2
Q
Define efficiency
A
Distributing resources in a way that most benefits producers and consumers
3
Q
What are the 3 types of efficiency?
A
Allocative
Productive
Dynamic
4
Q
Why might only one part of the economy grow?
A
If Q2CELL that only affects one good or service improves
5
Q
What is dynamic efficiency?
A
innovating
6
Q
What is allocative efficiency?
A
what we produce (allocating our resources
7
Q
What is productive efficiency?
A
using and getting the most out of our resources (output per unit of input)
