Chapter 2

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Author:
bonus188
ID:
307290
Filename:
Chapter 2
Updated:
2015-09-03 02:14:34
Tags:
Economics
Folders:
Economics
Description:
Chapter 2 Economics
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  1. Production Possibilities Frontier (PPF)
    A line or curve that shows all the possible combinations of two outputs that can be produced using all available resources
  2. Unattainable Points
    Can't be reached because there aren't enough workers
  3. Attainable Points
    Any points that can be made with enough or fewer workers
  4. Efficient Points
    combination of production possibilities that squeeze the most output possible from all available resources
  5. Inefficient Points
    Inside the frontier and do not use all available resources to capacity.
  6. Absolute advantage
    The ability to produce more of a good or service than others can with a give amount of resources
  7. Comparative Advantage
    The ability to produce a good or service at a lower opportunity cost than others
  8. Specialization
    Spending all of your time producing a particular good which has a comparative advantage, total production increases
  9. Gains from Trade
    The improvement in outcomes that occurs when producers specialize and exchange goods and services

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