BU204_03_Johnson_Jennifer_Unit 2 Homework

BU204_03_Johnson_Jennifer_Unit 2 Homework - Jennifer...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Jennifer Johnson Kaplan University BU204- 03 Macroeconomics Anthony Brogna Unit 2 October 24, 2010
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Key Terms – Definitions Production Possibility Frontier illustrates the trade-offs facing an economy that produces only two goods. It shows the maximum quantity of one good that can be produced for any given quantity produced of the Based on the information the “ Production Possibility Frontier” is a curve that compares the tradeoffs between two goods produced by an economy in order to demonstrate the efficient use of resources . Points along the curve are considered efficient and obtainable, and show the maximum amount of one good that can be produced in relation to another. Points within the curve are considered obtainable but inefficient. Points outside the curve are considered impossible to obtain. Comparative Advantage “a model that clarifies the principle of gains from trade—trade both between individuals
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

BU204_03_Johnson_Jennifer_Unit 2 Homework - Jennifer...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online