Chapter 1 Section 3
Published on Nov 22, 2015
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MORE DECKS TO EXPLORE
PRESENTATION OUTLINE
PRODUCT POSSIBILITIES CURVE
- A graph that shows alternative ways to use an economy's productive resources
- Apple trying to determine whether or not they need to produce more iPhones or iPads
PRODUCTION POSSIBILITIES FRONTIER
- A line on a production possibilities curve that shows the maximum possible output an economy can produce
- Apple needs to know how many iPhones they can produce with the amount of money that they have
EFFICIENCY
- The use of resources in such a way as to maximize an output of goods and services
- Apple trying to produce the maximum about of laptops as possible with the least amount of time
UNDERUTILIZATION
- The use of fewer resources than an economy is capable of using
- Apple not making as many products as they could, underproduction
LAW OF INCREASING COSTS
- An economic principle which states that as production shifts from making one good or service to another, more and more resources are needed to increase production of the second good or service
- Apple needs more resources to make the iPad and the iPhone at the same time
