Production Possibility Curve Flashcards
1
Q
Definition
A
Shows the maximum quantities of different combination of output of two products given resources and state of technology.
2
Q
Short term growth
A
Movement within the PPC
3
Q
Long term growth
A
Extension of the curve
4
Q
Increase factors of Production
A
Increase in consumption, as the product is more readily available.
5
Q
Opportunity cost definition
A
The value of the next best alternative forgone when a decision is made.
6
Q
Extension of PPC
A
Means an increase in the productive capacity of an economy, where a reduction shows a decrease in productive capacity.
