Module 3 cont

Question 1

economic growth on PPF

Answer 1

can produce on a point outside the original PPF
outward shift of curve
expansion of economy’s production possibility

Question 2

Trade off

Answer 2

when you give up something in order to have something else

Question 3

Efficient in Production

Answer 3

the economy is producing on its PPF

Question 4

Efficient in allocation

Answer 4

distributes resources so all consumers are as well off as possible

Question 5

Production Possibilities Frontier

Answer 5

model used to evaluate trade offs by simplifying the economy to only produce 2 goods

Question 6

Efficient

Answer 6

No missing opportunities
you cannot make someone better off without making someone else worse off
efficient in production and allocation

Question 7

PPF with Increasing opportunity cost

Answer 7

half circle shaped curve with rising opportunity cost (slope) at the extremes
the more of one good you produce, the more of the other good you have to give up

Question 8

sources of economic growth

Answer 8

1) increase in factors of production

2) better technology

Question 9

Technology

Answer 9

technical means for production

a better way of making something