Intro to PPF Graphs and Terms

ANY possibility you could have if you did not make the choice you made.

• Trade Off

• Opportunity Cost

• Specialization

• Contraction

• Expansion

The HIGHEST VALUE (to you) trade off based on the choice you made.

• Trade Off

• Opportunity Cost

• Specialization

• Contraction

• Expansion

When at maximum efficiency the company cannot produce as much as it was previously. Usually because of inferior or broken resources. The PPF shifts inwards.

• Trade Off

• Opportunity Cost

• Specialization

• Contraction

• Expansion

When at maximum efficiency the company can produce more than it was previously. Usually because of new or better resources. The PPF shifts outwards.

• Trade Off

• Opportunity Cost

• Specialization

• Contraction

• Expansion

A company or country achieving maximum productivity with minimum wasted effort or expense of money or resources is said to be...

• Trade Off

• Opportunity Cost

• Efficient

• Inefficient

• Expansion

A company that is not achieving maximum productivity; wasting or failing to make the best use of time or resources is said to be...

• Trade Off

• Opportunity Cost

• Efficient

• Inefficient

• Expansion

You walk into a fast foot restaurant, you see customers not being helped and employees sitting around with their feet up. This company could be described as...

• Trade Off

• Opportunity Cost

• Efficient

• Inefficient

• Expansion

Which of the following would best represent a Productions Possibilities Frontier for a company that is efficient?

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Which of the following would best represent a Productions Possibilities Frontier for a company that is efficient?

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Base - Delete this question (If you get it answer where the A is on the line)

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