Productive Efficiency
Any point on the PPC (using all resources with least cost)
Any point on the PPC (using all resources with least cost)
Productive Efficiency
PPC that is a straight line
Straight-Line PPC
Allocative Efficiency
The point on the PPC that reflects society’s most desired mix of goods (depends on what society values)
Straight-Line PPC
PPC that is a straight line
The point on the PPC that reflects society’s most desired mix of goods (depends on what society values)
Allocative Efficiency
rival resource
Limited amount of resource, therefore people have to compete for it.
There isn’t a limited amount of this resource: like established knowledge
non-rival resource
Bowed-Out PPC
A PPC that curves outward, showing increasing opportunity cost as you produce more of one good.
A PPC that curves outward, showing increasing opportunity cost as you produce more of one good.
Bowed-Out PPC
traditional economy
Limited amount of resource, therefore people have to compete for it.
rival resource
non-rival resource
There isn’t a limited amount of this resource: like established knowledge
an economic system where production, distribution, and consumption are based on custom, belief, and historical precedent, often relying on subsistence farming, hunting, gathering, and bartering
traditional economy
