Intro to Production Possibilities Frontier (or curve)

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