Scarcity & Choice
The central economic problem shown when a family must choose between paying rent or buying a new phone
scarcity
An economic activity best described as a service rather than a good.
getting a haircut
An assumption that must be true for a PPC to represent an economy at one time.
fixed technology
Improved worker education most likely causes this change to the PPC.
an outward shift
This exists because wants exceed available resources.
scarcity
This type of capital is increased through education and job training
human capital
Moving along a PPC from one point to another represents this.
change in opportunity cost
A technological advancement affecting only one good causes the PPC to do this.
pivot outward
The value of the next best alternative given up when a student chooses practice over a job.
opportunity cost
A delivery truck used by a business is classified as this type of good.
capital
The shape of the PPC explained by the law of increasing costs.
bowed outward
Education contributes to economic growth mainly by improving this.
human capital
A model showing that producing more of one good requires giving up another.
the guns or butter model
A rational decision-maker continues an activity as long as this exceeds cost.
marginal benefits exceeding marginal costs
The slope of the PPC best illustrates this concept.
opportunity cost
Rising opportunity costs suggest this about resources.
resources are not equally suited for all production
A method most useful when deciding between two competing alternatives.
cost-benefit analysis
A point inside a PPC represents this type of resource use.
inefficiency
An economy operating on the PPC is considered efficient because it does this.
using all resources with no waste
Demand increases while supply stays constant, resulting in this.
shortage