Intro to Production Possibilities Frontier (or curve)
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law of diminishing returns
as additional increments of resources are devoted to a certain purpose, the marginal benefit from those additional increments will decline
productive efficiency
given the available inputs and technology, it's impossible to produce more of one good without decreasing the quantity of another good that's produced
production possibilities frontier
model of the economy as a whole, which shows all possible combinations of goods products or services that a society could produce, given the resources it has available
comparative advantage
the ability to produce a good at a lower opportunity cost than another producer
allocative efficiency
when the mix of goods being produced represents the mix that society most desires
