Module 3

Since resources are ____________________ , every economy faces trade - offs .

You make a trade - off when you give up something in order to ____________________ something else .

The production possibilities curve illustrates a simplified economy that produces only ____________________ types of goods .

The production possibilities curve shows the ____________________ output of an individual , business , or country .

There is a crucial difference between points ____________________ or on the production possiblities curve and points outside the production possiblities curve .

If a production point lies inside or on the curve , it is ____________________ .

A production point that lies ____________________ the curve isn't feasible .

The production possibilties curve is useful for illustrating the general economic concept of ____________________ .

An economy is efficient if there are no ____________________ opportunities .

An economy is efficient if there is no way to make some people ____________________ off without making other people ____________________ off because all resources are being used .

An economy is inefficient if there is a way to make some people ____________________ off without making anyone ____________________ off because some resources are not being used .

An economy achieves ____________________ efficiency if it produces at a point on its production possibilities curve .

An economy is inefficient if it produces at a point ____________________ its production possibilties curve .

When people are involuntarily ____________________ , the economy is inefficient because it could produce more ouptut if those people were ____________________ .

Changes in ____________________ move the economy closer to , or further away from , the production possibilties curve .

____________________ unemployment is represented by points farther below the production possibilties curve .

____________________ unemployment is represented by points closer to the production possibilities curve .

Productive efficiency is only part of what's required for the economy as a whole to be ____________________ .

If an economy allocates its resources so that consumers are as well off as possibile , it achieves ____________________ efficiency .

Allocative efficiency is represented by a ____________________ point on the production possibilities curve that shows the mix of goods that people want to consume .

The production possibilties curve is also useful as a reminder that the true cost of any good is not only its price , but also everything else in addition to money that must be ____________________ ____________________ in order to get that good .

The amount of a good that is given up when moving along the production possibilities curve is the ____________________ ____________________ .

Whenever the opportunity cost of an additional unit of a good doesn't change , the production possibilties curve is a ____________________ ____________________ .

A straight - line production possibilities curve shows ____________________ opportunity cost .

When opportunity costs are increasing rather than constant , the production possibilities curve is ____________________ - ____________________ rather than a straight - line .

In reality , opportunity costs are typically ____________________ .

When only a small amount of a good is produced , the opportunity cost of producing that good is relatively ____________________ because the economy needs to use only those resources that are especially well suited for its production .

As more of a good is produced , its opportunity cost typically rises because well - suited inputs are ____________________ ____________________ and less adaptable inputs must be used instead .

The production possibilties curve helps us understand what it means to talk about ____________________ ____________________ .

Economic growth means that the economy ____________________ produce more of everything .

Economic growth is shown as an outward ____________________ of the production possibilities curve .

Unless the production possibilities curve shifts outward , the points ____________________ the PPC are unattainable .

There are ____________________ general sources of economic growth .

One source of economic growth is an increase in the quantity of ____________________ used to produce goods and services .

Resources include land , labor , ____________________ , and entrepreneurship .

The other source of economic growth is progress in ____________________ .

Technology refers to the ____________________ in which a good or service is produced .

Technology specific to the production of one good causes the production possibilities curve to ____________________ outward .

If an economy's production possibilities curve shifts inward , the economy has become ____________________ .

The production possibilities curve can shift inward if the economy ____________________ resources or technology .

____________________ ____________________ and destructive wars can lead to a loss of resources .