C1S3 Review Flashcard

Front

Simplified representations of complex economic activities are called economic

Back

models

Front

PPC is an acronym for

Back

production possibilities curve

Front

When creating a PPC, economists assume that

Back

technology is fixed

Front

The condition in which economic resources are not being used to their full potential is called

Back

underutilization

Front

Any point outside the curve of a PPC represents a goal that is

Back

impossible to meet because resources are fixed

Front

What is the law of increasing opportunity costs?

Back

As production switches from one product to another, increasingly more resources are needed to increase the production of the second product, which causes opportunity costs to rise.