Objective 2 Flashcards
1
Q
Division of labor
A
The principle of specialization of tasks by labor so that they become more productive
2
Q
Efficiency
A
A condition in which the maximum output is obtained given all various inputs and available technology
3
Q
Growth
A
A year-to-year increase in total output of an economy
4
Q
Investment
A
Capital expenditures intended to increase future benefits or productive output
5
Q
Production Possibility Curve
A
A graph representing the production trade-offs between two types of goods or services given fixed resources and technology in an economy.
6
Q
Trade-off
A
The sacrifice, (or opportunity cost) that must be made to obtain more of a certain product of service.
