Resources Flashcards
1
Q
Resource depreciation
A
Occurs when inputs deteriorate and become harder and more costly to maintain- can result in a drop in productivity
2
Q
Resource depletion
A
When the stock of available resources actually declines
3
Q
What can the PPF be used to illustrate
A
Economic growth
4
Q
Define economic growth
A
A sustained increase in a country’s productive capacity
5
Q
What does economic growth flow from
A
- increase in stock of capital inputs
- expansion of the available labour supply
- increase in productivity of fop
- rise in productive potential by innovation and entrepreneurship
6
Q
What can shift a PPF inwards
A
- natural disasters
- war
- net migration out of country
- fall in productivity of labour
7
Q
What can shift a PPF outwards
A
- productivity, efficiency of technology
- more fop available and used
- innovation
