Introduction to Microeconomics (OCR A-Level Economics): Flashcards
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Practise the cards
14 cards from this deck
Opportunity cost definition
Opportunity cost definition
Value of the next best alternative foregone
Trade-off definition
Trade-off definition
Choosing one option means giving up another
PPC and PPF relationship
PPC and PPF relationship
Same thing (Production Possibility Curve/Frontier)
Movement along PPC represents
Movement along PPC represents
Reallocation of resources between two goods
Points on PPC show
Points on PPC show
Efficient use of resources
Why PPC is concave to origin
Why PPC is concave to origin
Law of increasing opportunity costs
Points under PPC indicate
Points under PPC indicate
Underutilisation of factors of production
Outward shift of PPC means
Outward shift of PPC means
Economic growth or increased productive efficiency
Inward shift of PPC means
Inward shift of PPC means
Worsening quality/fall in factors of production
Technology biased growth
Technology biased growth
Technology improvement for one good increases its production
Opportunity cost shown on PPC by
Opportunity cost shown on PPC by
Slope of the PPC
100 acres all to wheat yields
100 acres all to wheat yields
10,000 bushels wheat, zero corn
100 acres all to corn yields
100 acres all to corn yields
8,000 bushels corn, zero wheat
Divided land example yields
Divided land example yields
5,000 bushels wheat & 4,000 bushels corn