UNIT 1 1/6/16

VOCABULARY

1. Efficiency: using resources in such a way as to maximums the reproduction of goods and services.
2. Allocative  Efficiency: the products being produce are the most desire by society
3. Productive efficiency: products are being produce in a least costly way. This is any point on the PPC
4. Under utilization: using fewer resources than an economy capable of using

THE POINTS OF THE GRAPH 

• point a: attainable but inefficient (inside the curve)
• point b: attainable and efficient (on the curve)
• point c attainable and efficient (on the curve)
• point d: unattainable (outside the curve)

*EX

 

PPG there are three types movement that occurred within the PPC

1. Inside of the curve: that is our point A.( it occurs when resources or unemployment or under{ no productive efficiency} employed

2. Along the PPC- actually move to B to C or C to B

3. Shifts on the PPC