PPC chart

Question 1

define resource

Answer 1

anything that can be used for specific purpose

Question 2

define wants

Answer 2

what people need in order to survive and are essential

Question 3

define needs

Answer 3

anything that improves quality of life but is not essential

Question 4

define basic economic problem

Answer 4

our unlimited wants to our limited means

Question 5

what 3 questions do a business have to answer in relation with the economic problem

Answer 5

1-what to produce
2-how to produce
3-who to produce for

Question 6

define opportunity cost

Answer 6

the next best alternative foregone

Question 7

define a producer

Answer 7

group/individuals who supplies goods/services to consumers

Question 8

define consumers

Answer 8

individuals who that are willing and able to purchase goods and services

Question 9

define goods

Answer 9

product which is available for sale which have a physical presence and are tangible

Question 10

define free goods

Answer 10

goods that are free and plentiful, ex-sunshine

Question 11

define economic goods

Answer 11

goods which are scarce and have a cost

Question 12

define capital goods

Answer 12

goods which are used to create other goods

Question 13

define services

Answer 13

what a individual does for you and is intangible

Question 14

what does a PPC chart show

Answer 14

the concept of opportunity cost and the maximum output combination of 2 goods in the most efficient way

Question 15

what does a bowed PPC curve show

Answer 15

that resources are more suited towards producing one good

Question 16

what does a straight curve show

Answer 16

that resources are equally efficient, opportunity cost is constant