Create an account
the principle that limited amounts of goods and services are available to meet unlimited wants
a situation in which consumers want more of a good or service than producers are willing to make available at a particular price
guns or butter
a phrase expressing the idea that a country that decides to produce more military goods has fewer resources to produce consumer goods and vice versa
thinking at the margin
the process of deciding whether to do or use one additional unit of some resource
a decision making process in which you compare what you will sacrifice and gain by a specific action
production possibilities curve
a graph that shows alternative ways to use the economy's productive resources
production possibilities frontier
a line on a production possibilities curve that shows the maximum possible output an economy can produce
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