Production possibilities
A curve showing the maximum attainable combinations of two goods that can be produced with available resources and current technology.
What is a Production Possibilities Frontier (PPF)?
What is trade?
The act of buying and selling
What is human capital?
Productivity of the labor force
The PPF is a___ tool. It shows “what__” “what__ be”
(positive, is, should)
What is comparative advantage?
Occurs when One economy can produce a good at a lower opportunity cost than another economy.
what is physical capital
Factories and equipment used in the production process
Which of the following is NOT considered a factor of production?
land
money
labor
entrepreneurship
Money
___ uses the resources of an economy to concentrate production on a small number of goods
Specialization
What is entrepreneurship?
The resources that organizes, manages, and assembles the other factors of production
In a tech, company, which of the following roles would be considered labor?
a software developer writing code
the company’s brand name
the ceo making strategic decisions
the office building
A software developer writing code
If you and your neighbor both grow oranges and grapefruits and you are better than your neighbor at picking both oranges and grapefruits, there can be no advantage to you in specializing in growing only one type of fruit and trading with your neighbor for the other. Is that true or false?
It is false
How does investing in employee training program affects a company’s human capital?
It increases human capital by enhancing employee skills
it has no effect on human capital
it only affects physical capital
it decreases human capital by increasing costs
It increases human capital by enhancing employee skills