Production Possibility Frontiers Flashcards
1
Q
What do production possibility frontiers show
A
The maximum possible output
2
Q
A trade off
A
Is when you have to choose between conflicting objectives because you cant achieve all your objectives at the same time. This involves compromising and aiming to achieve each of your objectives a bit.
3
Q
Opportunity cost is
A
The next best thing that you’re forced to give up
4
Q
Economic growth and the PPF
A
Economic growth shifts the PPF
