Production Possibilities and Opportunity Costs Flashcards
1
Q
Law of Increasing Costs
A
as a country produces more of one good, the opportunity cost of producing that good increases
2
Q
Shifting a Production Possibility Curve Outward
A
- Improved education/job training
- More natural resources
- Better production techniques
3
Q
Capital goods vs. Consumable Goods: Which will shift it’s PPC out faster?
A
Capital Goods: they make other things
4
Q
Blank: an outward shift of a PPC
A
Economic Growth
5
Q
PPC Efficiency?
A
Any production along the curve!
6
Q
Normative Statement
A
Statement of Opinion, or what ought to be.
7
Q
Positive Statement
A
Statement of Fact, can be proven or disproven.
8
Q
Capital?
A
Man made goods
