PPC
A decrease in resources would result in a shift in this direction.
What is left
This question seeks to answer the way in which things are produced in the economy. This could refer to what materials are used, what methods are used for production etc.
How is it Produced?
The government answers the three basic economic questions in this type of economy.
What is command?
A blender is considered this kind of resource.
What is capitol resources?
This could be considered an incentive for starting a new business
What is profit?
An increase in resources would result in a shift in this direction
What is right?
This question seeks to answer those which the production is for.
Whom?
This economy is influenced by the invisible hand and lacks any type of government influence. There is opportunity for monopoly to take over without regulation.
What is a market economy?
Labor that comes directly from humans is this type of resource.
What are human resources?
Henry Ford invented the assembly line to increase efficiency resulting in lowered cost oof the automobile, people taking on individualized roles rather than one person doing each task.
What is specialization?
A point may fall below the curve as a result of this.
What is an inefficient use of resources?
Due to the unlimited wants of humans it is not possible to fulfill every need and want they have as a result of limited resources.
What is scarcity?
This individual combines all factors of production.
What is an Entrepreneur?
The PPC may be used by business owners to understand the way resources may be used in an efficient way.
What is resource allocation?
A point going above the curve indicates this given the resources available.
What is impossible?
This type of cost occurs as a result of giving up one option for another.
What is opportunity cost?
The government tells the factories that they must produce only right boots for the sake of the military while another factory only produces left boots for the sake of the military. They have answered the economic questions in this case.
What is a command economy.
Resources that come from the Earth are known as this type of resource.
What are natural resources?
This model may be used by business owners to understand the costs and benefits that are associated with production at the unit level.
What is "thinking at the margin"?
Points that fall on the curve or below (efficient or not) are considered this.
What is possible?
When one chooses to go to a movie over a football game the opportunity cost is considered this.
What is the football game?
Control comes from influences of the market, but the government does not intervene and prices may be set quite high or consumers may be take advantage of.
What is a market economy?
There are two types of this capitol.
What are physical and human?
This model may be used by business owners when they define their options, list the costs and benefits associated, make a decision, and then reflect.
What is Rational Decision making?