PPF Flashcards
1
Q
opportunity cost
A
cost of one thing in terms of the next best option
which has been given up
2
Q
consumer goods
A
goods that are demanded and bought by households and individuals
3
Q
Capital goods
A
goods that are produced in order to aid the production of consumer goods in the future
4
Q
inward shift
A
an economy has suffered a loss or exhaustion of some of its scarce resources
5
Q
inward shift causes
A
war/conflict
large scale net migration outward
natural disasters
fall in productivity/efficiency
6
Q
outward shift
A
more of both goods are able to be produced
7
Q
outward shift causes
A
inventions/innovations
increase in productivity
increase in amount of raw mateials
