Chapter 2 Vocabulary

Chapter 2 Vocabulary - The condition where less than the...

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Chapter 2 Vocabulary Production Possibilities Frontier (PPF)- Represents the possible combinations of two goods that can be produced in a certain period of time under the conditions of a given state of technology and fully employed resources. Law of Increasing Opportunity Costs- As more of a good is produced, the opportunity costs of producing that good increases. Productive Efficiency- The condition where the maximum output is produced with given resources and technology. Productive Inefficiency-
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Unformatted text preview: The condition where less than the maximum output is produced with given resources and technology. Productive inefficiency implies that more of one good can be produced without any less of another good being produced. Technology-The body of skills and knowledge concerning the use of resources in production. An advance in technology commonly refers to the ability to produce more output with a fixed amount of resources or the ability to produce the same output with fewer resources....
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This note was uploaded on 04/07/2008 for the course ECON 402 taught by Professor Saha during the Spring '08 term at New Hampshire.

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