Production Possibilities Curve
Purpose of the production possibilities curve (PPC)?
What is a diagram that illustrates possible combinations of two goups of goods or services that a country can produce.
Difference between needs and wants
What is needed for survival or something you can live without.
Land is
Scarcity is ____________ and shortage is _______.
What is permanent and what is temporary.
Opportunity cost is
What is the next best alternative when a decision is made.
Makes and economy efficient
Example of a need
What is water, food, clothing
Labor is
What is effort devoted to a task for which a person is paid.
____________ is an example of scarcity.
What is natural resources, budget, etc?
How opportunity cost differs from trade offs
What is opportunity costs are the next best alternative when a decision is made and trade offs are all other choices you had.
Area on PPC where efficieny is represented
What is the line on the PPC
An example of a want
What is vacation, entertainment, or something not needed for survival
Physical capital is
What is man made tools, machines, or equipment used to produce goods and services.
____________ is an example of a shortage.
Underutilization
What is producing fewer goods than possible.
How a country increases its PPC
What is new technology
Water is a
What is a need
Human capital is
What is the knowledge, skills, training that make a person valuable to a business.
THe impact of scarcity on decision-making
Scarcity
What is the idea that something is limited.
What is using resources for the military or for consumers
Wants affect choices by
What is forcing you to make decisions
Capital affects production by
What is businesses cannot exist without capital
How shortages lead to increased prices
What is not enough goods or services are available to meet the demand.
Entrepreneur