Econ Chapter 1.3 Flashcard

Front

A production possibilities curve illustrates all the combinations of two goods or services that can be produced.

Back

combinations of two goods or services that can be produced.

Front

Scarcity requires

Back

choices.

Front

A production possibilities curve is a

Back

model of reality based on specific assumptions.

Front

An assumption in making a product possibilities curve is that:

Back

technology will not change during the period being studied.

Front

An increase in available resources will have which of the following effects on the production possibilities curve? Options: The curve will shift upward., The curve will shift downward., The curve will shift to the left., The curve will shift to the right.

Back

The curve will shift to the right.

Front

Opportunity Cost

Back

The value of the next best alternative given up to obtain an item

Front

Trade-off

Back

The sacrifice of one choice for another.