ch2

Card Set Information

Author:
christiemcmanaman
ID:
117512
Filename:
ch2
Updated:
2011-11-17 12:32:45
Tags:
economics
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Description:
ch2 key terms econ
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  1. absolute advantage
    One person has an absolute advantage over another if he or she takes fewer hours to perform a task than the other person does.
  2. attainable point
    Any combination of goods that can be produced using currently available resources.
  3. comparative advantage
    One person has a comparative advantage over another if his or her opportunity cost of performing a task is lower than the other person's opportunity cost.
  4. efficient point
    Any combination of goods for which currently available resources do not allow an increase in the production of one good without a reduction in the production of the other.
  5. inefficient point
    Any combination of goods for which currently available resources enable an increase in the production of one good without a reduction in the production of the other.
  6. production possibilities curve
    A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good.
  7. productivity
    Units of output per hour divided by units of input per hour.
  8. unattainable point
    Any combination of goods that cannot be produced using currently available resources.

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