PPFs Flashcards
1
Q
OPPORTUNITY COST
A
the benefits lost when a decision is made
2
Q
PPF
A
production possibility frontiers - shows available outcomes of 2 goods/ services given the current FoPs
3
Q
PPF: PROUCTIVE EFFICIENCY
A
no wasted resources, producing at the least possible cost (anywhere on PPF line)
4
Q
ALLOCATIVE EFFICIENCY
A
allocating resources in the best possible way to maximise welfare
5
Q
PPF: inefficient use of resources
A
anywhere below PPF line
6
Q
PPF: not currently attainable
A
anywhere above PPF line
