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1-3 Vocabulary jw

a simplified representation of economic forces. economic model
a graph used by economists to show the impact of scarcity on an economy. Production possibilities curve (PPC)
Involves producing the maximum amount of goods and services possible. Effciency
Means producing fewer goods and services than possible. Underutilization
a law that states that as production switches from one product to another, increasing amounts of resources are needed to increase the production of the second product. law of increasing opportunity costs
Resources are fixed All resources are fully employed Only two things can be produced technology is fixed Four assumptions of the production possibilties curve.
Created by: joannw15